Income Tax Assessment Amendment (Foreign Investment) Act 1992 (190 of 1992)

7   Value at end of year of income

Section 31 of the Principal Act is amended by adding at the end the following subsections:

"(4) Subject to the following provisions of this section, the value to be taken into account at the end of the 1991-92 year of income, and at the end of each later year of income, of an article of trading stock that consists of an interest in a FIF is to be its cost price.

"(5) Subject to subsection (6), if the taxpayer elects that this subsection is to apply to the taxpayer in relation to all the taxpayer's interests in FIFs, the value to be taken into account at the end of the year of income of every article of trading stock that is an interest in a FIF is to be its market value.

"(6) Subsection (5) does not apply to the taxpayer unless the election is made before the taxpayer furnishes a return in respect of income of the first year of income in which any notional accounting period of a FIF in which the taxpayer has an interest ends but, if the election is so made, that subsection applies to the taxpayer in respect of that first year of income and in respect of all later years of income.

"(7) If:

(a) subsection (4) would, apart from this subsection, apply to the taxpayer in respect of the 1991-92 year of income; and

(b) an article of trading stock was on hand at the beginning of that year of income; and

(c) the value of that article of trading stock that was taken into account at the beginning of that year of income was greater or less than its cost price; then:

(d) subsection (4) does not apply in relation to that article of trading stock; and

(e) the value of that article of trading stock that is to be taken into account at the end of that year of income, or at the end of any later year of income to which subsection (5) does not apply, is the value referred to in paragraph (c) of this subsection.

"(8) In this section:

'FIF' has the same meaning as in Part XI;

'notional accounting period', in relation to a FIF, has the same meaning as in Part XI.".