Income Tax Assessment Act 1936

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

Division 7 - Calculation of attributable income of CFC  

Subdivision C - Modifications relating to Australian capital gains tax  

SECTION 421   ELECTIONS UNDER CGT ROLL-OVER PROVISIONS  

421(1)   [Period for elections]  

Subject to this section, for the purpose of applying this Act in calculating the attributable income of the eligible CFC for the eligible period, any election or choice that may be made, by the eligible CFC, or by the eligible CFC and another entity, apart from this section, under any of the CGT roll-over provisions:

(a) on or before the date of lodgment of a particular return of income; or

(b) within such further period as the Commissioner allows;

is to be made instead:

(c) if there is only one attributable taxpayer in relation to the eligible CFC at the end of the eligible period - on or before the date of lodgment of the taxpayer's return of income of the year of income in which the end of the eligible period occurs; or

(d) if there are 2 or more attributable taxpayers in relation to the eligible CFC at the end of the eligible period:

(i) if the taxpayers ' returns of income of the year of income in which the end of the eligible period occurs are lodged on different dates - on or before the later or latest of those dates; or

(ii) if the taxpayers ' returns of income of the year of income in which the end of the eligible period occurs are lodged on the same date - on or before that date; or

(e) in any case - within such further period as the Commissioner allows.

421(1A)   [Application where designated entity is taxpayer]  

For the purposes of applying subsection (1) to an eligible CFC in relation to an eligible period, if:

(a) an entity (the designated entity ) is the only attributable taxpayer in relation to the eligible CFC at the end of the eligible period; and

(b) the designated entity's attribution percentage in relation to the company is 100% at the end of the eligible period;

then, instead of the election or choice being given by the eligible CFC, or by the eligible CFC and another entity (which other entity may be the designated entity), the election or choice may be given by:

(c) the designated entity; or

(d) if the designated entity is not the same as the other entity - the designated entity and the other entity;

as the case requires.

421(2)   [Election or choice on disposal re active income test]  

Except in accordance with subsection (3), subsection (1) does not apply to an election or choice in respect of the disposal of an asset if the disposal is, or apart from an election or choice in accordance with subsection 438(3A) would be, taken into account in determining under Division 8 whether the eligible CFC passes the active income test in relation to the eligible period.

421(3)   [Election or choice under s 438(3A)]  

If an election or choice is made under a CGT roll-over provision in accordance with subsection 438(3A) , that election or choice also has effect as if it were made under the CGT roll-over provision in accordance with subsection (1) of this section.