Taxation (International Investment and Remedial Matters) Act 2012

32 Limits on choice of calculation methods
  • (1) Section EX 46(2) is repealed.

    (2) Section EX 46(3) is replaced by the following:

    Attributable FIF income method
    • (3) A person may use the attributable FIF income method to calculate FIF income or loss from an attributing interest in a FIF for an accounting period only if the person can provide to the Commissioner, if requested, sufficient information to enable the Commissioner to check the calculations required by section EX 50 and,—

      • (a) at all times in the accounting period,—

        • (i) the FIF is a company; and

        • (ii) the item income interest given by section EX 50(4) for the person and the FIF is 10% or more; and

        • (iii) the person is not a portfolio investment entity:

      • (b) the FIF is a CFC and the person cannot determine the market value of the attributing interest at the beginning of the accounting period except by independent valuation and neither the person nor a person who has a direct income interest of 10% or more in the FIF is—

        • (i) a listed company:

        • (ii) a group investment fund:

        • (iii) a portfolio investment entity:

        • (iv) a superannuation scheme:

        • (v) a unit trust:

        • (vi) a trustee of a trust with a beneficiary described in 1 or more of subparagraphs (i) to (iv).

    (3) Section EX 46(4) is repealed.

    (4) Section EX 46(5) is replaced by the following:

    Deemed rate of return method
    • (5) A person may use the deemed rate of return method to calculate FIF income or loss from an attributing interest in a FIF only if the person is required by section EX 47 to use the deemed rate of return method for the interest.

    (5) Section EX 46(6)(c) is repealed.

    (6) Section EX 46(7) is repealed.

    (7) In section EX 46(8), Despite subsection (7), a person is replaced by A person.

    (8) Section EX 46(9)(a) is repealed.

    (9) In section EX 46, in the list of defined terms,—

    • (a) branch equivalent method is omitted:

    • (b) attributable FIF income method is inserted.

    (10) Subsections (1) to (8) apply for income years beginning on or after 1 July 2011.