Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 960.70

Australian resident required to prepare financial reports under section   292 of the Corporations Act 2001

  (1)   If you make a choice under item   1 of the table in subsection   960 - 60(1) with effect from the start of a particular income year, your applicable functional currency for:

  (a)   that income year; and

  (b)   each later income year for which the choice is in effect;

is the sole or predominant * foreign currency in which you kept your accounts at the time when you made the choice.

Permanent establishment, offshore banking unit or transferor trust

  (2)   If you make a choice under item   2, 3 or 5 of the table in subsection   960 - 60(1) in relation to a * permanent establishment, an * offshore banking unit or a * transferor trust with effect from the start of a particular income year, the applicable functional currency of the establishment, unit or trust for:

  (a)   that income year; and

  (b)   each later income year for which the choice is in effect;

is the sole or predominant * foreign currency in which the establishment, unit or trust kept its accounts at the time when you made the choice.

Controlled foreign company

  (3)   If you make a choice under item   4 of the table in subsection   960 - 60(1) in relation to a * controlled foreign company (CFC) with effect from the start of a particular * statutory accounting period, the applicable functional currency of the CFC for:

  (a)   that statutory accounting period; and

  (b)   each later statutory accounting period for which the choice is in effect;

is the sole or predominant * foreign currency in which the CFC kept its accounts at the time when you made the choice.

Note:   The attributable income of a controlled foreign company is calculated separately for each attributable taxpayer--see section   381 of the Income Tax Assessment Act 1936 .

Calculating capital gains and losses on indirect Australian real property interests

  (3A)   If subsection   960 - 61(2) applies, your applicable functional currency for the purposes of that subsection is the sole or predominant currency in which you keep your accounts at the time of the * CGT event.

Accounts

  (4)   For the purposes of this section, accounts means:

  (a)   ledgers; and

  (b)   journals; and

  (c)   statements of financial performance; and

  (d)   profit and loss accounts; and

  (e)   balance - sheets; and

  (f)   statements of financial position;

and includes statements, reports and notes attached to, or intended to be read with, any of the foregoing.