Draft Taxation Determination

TD 93/D232

Income tax: thin capitalisation by non-residents: is the retrospective creation, or amendment, of an asset revaluation reserve allowed for the purposes of Div 16F of the Income Tax Assessment Act 1936?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 94/36.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. No. In measuring foreign equity, section 159GZG requires an asset revaluation reserve to be in place in the company's accounting records at the beginning of the relevant financial year.

2. If a company holds information which supports a revaluation of any assets in its accounts, for the relevant financial year, but does not formalise the revaluation by placing an entry into an asset revaluation reserve, then the company is precluded from retrospectively creating or amending an asset revaluation reserve.

Commissioner of Taxation
16 September 1993

References


BO CASAUD 15

ISSN 1038 - 8982

Subject References:
Thin Capitalisation
Asset Re-Valuation

Legislative References:
ITAA 159GZG(1)
ITAA 159GZG(2)

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