Income Tax Assessment Act 1997
Hide history note
View history notePart 3-90 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).
Div 715 inserted by No 16 of 2003 (see s 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).
Subdiv 715-J inserted by No 23 of 2005.
SECTION 715-660 Head company ' s choice overriding entry history rule
Application
715-660(1)
This section has effect if an entity becomes a * subsidiary member of a * consolidated group at a time (the joining time ) and either:
(a) the question whether the entity had made a choice (however described) under a provision (the choice provision ) listed in the table was relevant to working out the entity ' s liability (if any) for income tax, or the entity ' s loss (if any) of a particular * sort, calculated by reference to an income year starting before the joining time; or
(b) before the joining time, the entity made a choice that:
(i) is described in paragraph (a); and
(ii) would, if the entity had not become a subsidiary member of a consolidated group, have started to have effect for working out the entity ' s liability (if any) for income tax, or the entity ' s loss (if any) of a particular * sort, calculated by reference to the first income year starting after the joining time.
| List | |||
| Item | Provision | Subject of provision | |
| 1 | A provision of Part X of the Income Tax Assessment Act 1936 for an irrevocable declaration, election, choice or selection | Attribution of income in respect of controlled foreign companies | |
| 2 | A provision of Subdivision 420-D that provides for a choice | Valuing * registered emissions units | |
| 3 | Item 1 of the table in subsection 960-60(1) | Choosing to use an * applicable functional currency | |
| 3A | section 230-210 , 230-255 , 230-315 or 230-395 | Choice about treatment of gains and losses from * Division 230 financial arrangement | |
| 4 | A provision that: | Choice about a matter described in the regulations | |
| (a) | provides for a choice (however described); and | ||
| (b) | is a provision of regulations made for the purposes of this Act, other than this item; and | ||
| (c) | is prescribed by regulations made for the purposes of this item |
Note:
Declarations, elections and selections made under the choice provision by the entity are all examples of choices under that provision (even though the provision does not call them choices), because the entity has chosen to make them.
S 715-660(1) amended by No 132 of 2011, s 3 and Sch 2 item 51, by inserting table item 2, effective 2 April 2012.
S 715-660(1) amended by No 114 of 2010, s 3 and Sch 1 item 51, by substituting table item 1 for table items 1 and 2, applicable in relation to the 2010-11 year of income for a taxpayer and later years of income. Table items 1 and 2 formerly read:
1 A provision of Part X or XI of the Income Tax Assessment Act 1936 for an irrevocable declaration, election, choice or selection Attribution of income in respect of controlled foreign companies (if the provision is in Part X), or foreign investment funds and foreign life assurance policies (if the provision is in Part XI) 2 Section 70-70 Valuing interests in * FIFs that are trading stock
S 715-660(1) amended by No 15 of 2009 , s 3 and Sch 1 item 90, by inserting table item 3A, effective 26 March 2009. For application and transitional provisions see note under Div 230 heading.
Objects
715-660(2)
The main objects of this section are:
(a) to override section 701-5 (Entry history rule) in relation to a choice (however described) by the entity under the choice provision or the absence of such a choice; and
(b) to extend, in some cases, the time for the * head company of the * consolidated group to make a choice (however described) under the choice provision after the joining time; and
(c) to modify, in some cases, the time at which such a choice by the head company starts to have effect.
Overriding the entry history rule
715-660(3)
For the head company core purposes set out in section 701-1 (Single entity rule), ignore a choice (however described) made by the entity under the choice provision or the absence of such a choice.
Extension of time for head company to make choice
715-660(4)
If:
(a) because of:
(i) the fact that the entity became a * subsidiary member of the * consolidated group; and
the question whether the * head company of the group has made a choice (however described) under the choice provision becomes relevant for the head company core purposes set out in that section; and
(ii) section 701-1 (Single entity rule);
(b) there is a limit (outside this section) on the period within which the head company may make such a choice;
the head company has until the later of these times to make such a choice:
(c) the last time the head company may make the choice (apart from this subsection);
(d) the end of 90 days after the Commissioner is given notice under Division 703 that the entity has become a * member of the group or, if the Commissioner allows a later time for the purposes of this paragraph, that later time.
When head company ' s choice starts to have effect
715-660(5)
If the * head company of the * consolidated group makes a choice (however described) under the choice provision as a result of becoming able to make the choice because the entity became a * subsidiary member of the group at the joining time, the choice starts to have effect:
(a) at the joining time; or
(b) if the choice relates (explicitly or implicitly) to one or more whole income years - for the income year in which the joining time occurs.
Note:
Subsection (5) has effect whether or not subsection (4) contributed to the head company becoming able to make the choice.
Relationship with other provisions
715-660(6)
Section 701-5 (Entry history rule) and the choice provision have effect subject to this section.
S 715-660 inserted by No 23 of 2005.
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