Tax Laws Amendment (2012 Measures No. 2) Act 2012 (99 of 2012)

Schedule 2   Consolidation and TOFA

Income Tax Assessment Act 1997

3   Subsections 715-375(2), (3) and (4)

Repeal the subsections, substitute:

(2) For the purposes of Division 230 and Schedule 1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009, treat the *head company of the group as starting to have the accounting liability at the joining time for receiving a payment equal to:

(a) if the liability is or is part of a *Division 230 financial arrangement of the head company at the joining time (because of subsection 701-1(1) (the single entity rule)):

(i) to which Subdivision 230-B (accruals method or realisation method) applies; or

(ii) to which Subdivision 230-E (hedging financial arrangements method) applies;

the amount of the liability, as determined in accordance with:

(iii) the joining entity’s *accounting principles for tax cost setting; or

(iv) if the amount of the liability cannot be determined in accordance with the joining entity’s accounting principles for tax cost setting - comparable standards for accounting made under a *foreign law; or

(b) otherwise - the liability’s *Division 230 starting value at the joining time.