Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-AA - Thin capitalisation rules for general class investors  

Operative provisions

SECTION 820-47   Choices under subsection 820-46(3) or (4)  

820-47(1)    
A choice under subsection 820-46(3) or (4) can only be made in the * approved form.

820-47(2)    
A choice under subsection 820-46(3) or (4) can only be made:

(a)    on or before the earlier of the following days:

(i) the day the entity lodges its * income tax return for the income year;

(ii) the day the entity is required to lodge its income tax return for the income year; or

(b)    a later day allowed by the Commissioner.

820-47(3)    
Subject to subsections (4) and (4A) of this section, a choice under subsection 820-46(3) or (4) cannot be revoked.

820-47(4)    
An entity that makes a choice under subsection 820-46(3) or (4) (other than a choice that is taken to have been made under subsection 820-46(5) ) may revoke the choice if the Commissioner makes a decision to that effect under subsection (6) .

820-47(4A)    
If, under subsection 820-46(5) , an entity is taken to have made a choice to apply the third party debt test in relation to an income year:

(a)    the entity may not make a choice under subsection 820-46(3) (group ratio test applies) in relation to that income year; and

(b)    any choice previously made under subsection 820-46(3) by the entity in relation to that income year is revoked and taken never to have been made.

820-47(5)    
For the purposes of this Division (other than this section), if a choice is revoked under subsection (4) or (4A) of this section, the entity is taken to have never made the choice.

820-47(6)    
The Commissioner can decide, in writing, that a specified entity can revoke a specified choice under subsection 820-46(3) or (4) (other than a choice that is taken to have been made under subsection 820-46(5) ) in relation to an income year, if the Commissioner is satisfied that all of the following conditions are satisfied:

(a)    the entity made the choice;

(c)    the entity has applied to the Commissioner, in the *approved form, to revoke the choice before the earlier of the following days:

(i) the day that is 4 years after the day the entity lodged its *income tax return for the income year;

(ii) the day that is 4 years after the day the entity was required to lodge its income tax return for the income year;

(d)    it is fair and reasonable, having regard to matters the Commissioner considers relevant, to allow the entity to revoke the choice.

820-47(7)    
If the Commissioner makes a decision under subsection (6) , the Commissioner must give a copy of the decision to the entity as soon as practicable.