Taxation Laws Amendment Act (No. 5) 2003 (142 of 2003)

Schedule 1   Thin Capitalisation: amendments taking effect on 1 July 2001

Part 4   Revaluing assets for thin capitalisation purposes

Income Tax Assessment Act 1997

15   After section 820-980

Insert:

Records about asset revaluations

820-985 Methodology of revaluation and independence of valuer

(1) An entity must keep records under this section for a revaluation of assets mentioned in subsection 820-680(2) (except a revaluation that need not comply with that subsection because of subsection 820-680(2A)).

(2) The records must contain particulars about:

(a) the methodology used in making the revaluation (including any assumptions made); and

(b) how that methodology was applied (including the data and other information used); and

(c) who made the revaluation; and

(d) that person's qualifications and experience as an expert in valuing assets of the relevant kind; and

(e) the remuneration and expenses paid to that person.

(3) If the revaluation was made in accordance with subsection 820-680(2B) (about external validation of a revaluation made internally), the records must also contain particulars of:

(a) who was the external expert referred to in that subsection; and

(b) his or her qualifications and experience as an expert in valuing assets of the relevant kind; and

(c) the remuneration and expenses paid to him or her; and

(d) his or her review of the methodology for making the revaluation (as required by subparagraph 820-680(2B)(b)(ii)); and

(e) his or her agreement that the methodology is suitable for making it (as required by subparagraph 820-680(2B)(b)(iii)).

(4) The entity must prepare the records before the time by which the entity must lodge its *income tax return for the income year in relation to all or a part of which the revaluation is made.

Note: A person must comply with the requirements in section 262A of the Income Tax Assessment Act 1936 about the keeping of these records (see subsections (2AA) and (3) of that section).