Income Tax Assessment (1997 Act) Regulations 2021

SCHEDULES

SCHEDULE 2  

Note: See item 12 of the table in subsection 960-50(6) of the Act, as modified, and section 960-50.01 of this instrument.

TRANSLATION OF CURRENCY AMOUNTS - RULES AND OTHER REQUIREMENTS

PART 1 - RULES AND REQUIREMENTS FOR ITEM 12 OF THE TABLE IN SUBSECTION 960 50(6) OF THE ACT  

3   Choice of average exchange rate  

3(1)    
For the purposes of item 12 of the table in subsection 960-50(6) of the Act, as modified by subsection 960-50.01(2) of this instrument, an entity may, in a period, translate an amount into Australian currency using an exchange rate that is an average of all of the exchange rates that are applicable during a period, not exceeding 12 months, that is chosen by the entity (an average exchange rate ).

3(2)    
However:

(a)    the entity is not permitted to translate an amount using an average exchange rate unless it appears to the entity on reasonable grounds that the rate would be a reasonable approximation of the exchange rate or rates that the entity would have used if the entity had used the exchange rate required by another appropriate item of the table in subsection 960-50(6) of the Act; and

(b)    the entity must obtain:

(i) all of the exchange rates that it will use to work out the average exchange rate; or

(ii) an average exchange rate that has been worked out for a particular period;

from one or more sources that are not associates of the entity, and not the entity itself, unless the Commissioner notifies the entity that it may obtain the rate or rates from one or more specified sources; and

(c)    the entity must translate amounts relating to the relevant period using the rate.

Note 1:

Item 12 of the table in subsection 960-50(6) of the Act is available as an alternative to the special translation rules in items 1 to 11A (inclusive) in that table. Therefore, this subclause requires the entity to consider whether using the translation rules in item 12 would lead to a reasonable approximation with the translation rules in another appropriate item of the table.

Note 2:

For associate , see subsection 995-1(1) of the Act.