Income Tax (Transitional Provisions) Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 830 - Application of the foreign hybrid rules  

SECTION 830-15   Modified version of income tax law to apply for certain past income years  

Basic rule

830-15(1)    
Subject to subsection (3), if:

(a) an income year (the past income year ) of a taxpayer started before:

(i) if section 830-5 of this Act does not apply to the taxpayer - the 2003-2004 income year; or

(ii) if that section applies to the taxpayer - the 2002-2003 income year; and

(b) either:

(i) a statutory accounting period of a CFC, in relation to which the taxpayer was an attributable taxpayer at the end of that period and had an attribution percentage greater than nil, ended in the past income year; or

(ii) the taxpayer had an interest in a FIF at the end of the past income year; and

(c) the CFC or FIF would have been a foreign hybrid in relation to the past income year under:

(i) section 830-10 of the Income Tax Assessment Act 1997 (disregarding paragraph (1)(e) of that section); or

(ii) section 830-15 of that Act (disregarding paragraph (1)(d) and subsection (3) of that section);

if that section had been in force in the past income year;

then, for the purposes mentioned in subsection (2) of this section, the Income Tax Assessment Act 1936 applies with the modifications set out in section 830-20 of this Act in working out:

(d) the attributable income of the CFC for the statutory accounting period that ended in the past income year; or

(e) the notional income of the FIF for the notional accounting period that ends in the past income year.

Purposes

830-15(2)    
The purposes are:

(a) any amendment of an assessment of the taxpayer for the past income year made before the commencement of this section; and

(b) the making of an assessment of the taxpayer for the past income year between the commencement of this section and the end of 30 June 2004; and

(c) any amendment of such an assessment; and

(d) the making of any assessment of the taxpayer for the past income year that takes place after 30 June 2004 and before the end of the time within which, if that assessment had been made on 1 July 2004, the Commissioner could amend the assessment under paragraph 170(2) (b), (c) or (d) of the Income Tax Assessment Act 1936 (as in force before the day on which the Tax Laws Amendment (Improvements to Self Assessment) Act (No. 2) 2005 received the Royal Assent); and

(e) any amendment of such an assessment.

Exception

830-15(3)    
If:

(a) apart from this subsection, subsection (1) would apply to a taxpayer in relation to a CFC for a past income year; and

(b) before the commencement of this section, the taxpayer lodged its income tax return for the past income year; and

(c) the taxpayer prepared the income tax return on the basis that, for the purposes of Part X of the Income Tax Assessment Act 1936 , the CFC was a resident of no particular unlisted country;

then subsection (1) does not apply to the taxpayer in relation to the CFC for the past income year unless:

(d) if there is only one past income year to which paragraphs (a) to (c) of this subsection apply - the taxpayer elects that the subsection applies for the past income year; or

(e) if there is more than one past income year to which paragraphs (a) to (c) of this subsection apply - the taxpayer elects that the subsection applies for all of those past income years.

830-15(4)    
The taxpayer must make the election:

(a) on or before the day on which the taxpayer lodges its income tax return for the 2003-2004 income year; or

(b) within a further time allowed by the Commissioner.

830-15(5)    
The election is irrevocable.