Income Tax Assessment Act 1936

PART X - ATTRIBUTION OF INCOME IN RESPECT OF CONTROLLED FOREIGN COMPANIES  

Division 8 - Active income test  

Subdivision G - Substantiation requirements  

SECTION 452   ACTIVE INCOME TEST - SUBSTANTIATION REQUIREMENTS FOR PARTNERSHIP  

452(1)   [Substantiation requirements]  

The substantiation requirements for a partnership in relation to a statutory accounting period are as follows:

(a) the partnership must keep (in Australia or elsewhere) such accounting records (in this section called the " general accounting records " ) as correctly record and explain the matters, transactions, acts and operations that are relevant to the preparation of the recognised accounts of the partnership for the statutory accounting period;

(b) the general accounting records must be so kept as to enable the recognised accounts of the partnership for the statutory accounting period to be prepared;

(c) the partnership must retain, for the retention period in relation to the statutory accounting period:

(i) the recognised accounts of the partnership for the statutory accounting period; and

(ii) the general accounting records of the partnership for the statutory accounting period;

(d) the partnership must comply with a request made in a notice given to it under subsection (2) in relation to the statutory accounting period.

452(2)   [Notice by CFC]  

A company that is a CFC at the end of a statutory accounting period of the company may, by notice in writing served on a partnership in which the company was a partner at any time during the statutory accounting period, request the partnership:

(a) to give to the company, within the period and in the manner specified in the notice, copies of such of the following documents as are specified in the notice:

(i) the recognised accounts of the partnership for the statutory accounting period;

(ii) the general accounting records of the partnership for the statutory accounting period; or

(b) to prepare a document containing particulars of the basis of the calculation of:

(i) the notional gross tainted turnover of the partnership for the statutory accounting period; and

(ii) the notional gross turnover of the partnership for the statutory accounting period;

and to give to the company, within the period and in the manner specified in the notice, a copy of that document.

452(3)   [Period in notice]  

The period specified in the notice must end:

(a) later than 30 days after the date of service of the notice; and

(b) before the end of the retention period in relation to the statutory accounting period.

452(4)   [Extension of period]  

Upon written application made by the company within the period specified in the notice, the Commissioner may, by notice in writing served on the company, extend the period specified in the notice.

452(5)   [Period deemed extended]  

Where:

(a) an application under subsection (4) is made before the end of the period specified in the notice; and

(b) at the end of the period, the Commissioner has not notified the company of the Commissioner's decision on the application;

the following provisions have effect:

(c) if the Commissioner's decision is not notified to the company before the end of the retention period in relation to the statutory accounting period concerned - the Commissioner is taken to have extended the period under subsection (4) to the end of the retention period;

(d) if the Commissioner's decision is notified to the company before the end of the retention period in relation to the statutory accounting period concerned - the Commissioner is taken to have extended the period under subsection (4) to the end of the day (in this subsection called the " decision day " ) on which the Commissioner's decision is notified to the company;

(e) if the Commissioner decides to extend the period - subject to subsection (6), the extended period must end after the decision day.

452(6)   [End of extended period]  

The period as extended under subsection (4) must end before the end of the retention period in relation to the statutory accounting period.

452(7)   [Reference to period]  

A reference in this section to the period specified in the notice is a reference to the period as extended under subsection (4).

452(8)   [Effect of non-compliance]  

A refusal or failure to comply with the notice is not an offence.

452(9)   [Application of s 262A(4)]  

Subsection 262A(4) does not apply to records kept or obtained under or for the purposes of this section.