Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The active foreign business asset percentage of a company (the foreign company ) that is a foreign resident, in relation to the holding company mentioned in section 768 - 505, at the time of the CGT event mentioned in that section, is worked out in accordance with this section.
(2) Work out that percentage under section 768 - 520 if:
(a) the holding company has made a choice under subsection 768 - 515(1) in relation to the foreign company for that time; and
(b) there is sufficient evidence of the * market value at that time of:
(i) all * assets included in the total assets of the foreign company at that time; and
(ii) all * active foreign business assets of the foreign company at that time.
Book value method
(3) Work out that percentage under section 768 - 525 if:
(a) the holding company has made a choice under subsection 768 - 515(2) in relation to the foreign company for that time; and
(b) there are * recognised company accounts of the foreign company for a period that ends no later than that time, but no more than 12 months before that time; and
(c) if the foreign company was in existence before the start of the period mentioned in paragraph (b)--there are recognised company accounts of the foreign company for a period that ends at least 6 months, but no more than 18 months, before the end of the period mentioned in paragraph (b).
Default method
(4) Otherwise, that percentage is:
(a) 100% (if this section is being applied for the purposes of section 768 - 505 to reduce a * capital loss of the holding company); or
(b) zero (in any other case).