Choosing to use a functional currency | |||
Item | If you are: | you may choose to use the * applicable functional currency to... | with effect from the start of... |
1 | an Australian resident who is required to prepare financial reports under section 292 of the Corporations Act 2001 | work out so much of your taxable income or tax loss as is not subject to a choice made by you under any of the other items of this table | (a) if the choice you make under this item is a backdated startup choice (see section 960 - 65)--the income year in which you make the choice; or (b) in any other case--the income year following the one in which you make the choice. |
2 | (a) an Australian resident carrying on an activity or business at or through an * overseas permanent establishment; or (b) a foreign resident carrying on an activity or business at or through an * Australian permanent establishment | work out the taxable income or tax loss derived from the activity or business carried on at or through the permanent establishment | (a) if the choice you make under this item is a backdated startup choice (see section 960 - 65)--the income year in which you make the choice; or (b) in any other case--the income year following the one in which you make the choice. |
3 | work out your total assessable OB income (within the meaning of Division 9A of Part III of the Income Act Assessment Act 1936 ) and your total allowable OB deductions (within the meaning of that Division) | (a) if the choice you make under this item is a backdated startup choice (see section 960 - 65)--the income year in which you make the choice; or (b) in any other case--the income year following the one in which you make the choice. | |
4 | an attributable taxpayer (within the meaning of Part X of the Income Tax Assessment Act 1936 ) of a * controlled foreign company (CFC) | work out the * attributable income of the CFC | (a) if the choice you make under this item is a backdated startup choice (see section 960 - 65)--the CFC's * statutory accounting period in which you make the choice; or (b) in any other case--the CFC's statutory accounting period following the one in which you make the choice. |
5 | a * transferor trust | work out your attributable income (within the meaning of Division 6AAA of Part III of the Income Tax Assessment Act 1936 ) | (a) if the choice you make under this item is a backdated startup choice (see section 960 - 65)--the income year in which you make the choice; or (b) in any other case--the income year following the one in which you make the choice. |
Note: The attributable income of a controlled foreign company is calculated separately for each attributable taxpayer--see section 381 of the Income Tax Assessment Act 1936 .
(2) A choice must be in writing.
(3) A choice under item 1 of the table in subsection (1) continues in effect until:
(a) a withdrawal of the choice takes effect (see section 960 - 90); or
(b) immediately after the end of the income year in which you cease to be subject to a requirement to prepare financial reports under section 292 of the Corporations Act 2001 ;
(4) A choice under item 2, 3, 4 or 5 of the table in
subsection (1) continues in effect until a withdrawal of the choice
takes effect (see section 960 - 90).