Document ID: chunk:federal_register_of_legislation:C2024C00267:section:4:p8
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 4 (pt 8/64)
Character Range: 723734–726317

of that Act apply on and after 1 July 2002.
 (2) Subdivision 820‑L of that Act, to the extent that it relates to the requirements under section 820‑960 of that Act, applies only in relation to an income year that begins on or after 1 July 2002.

820‑12  Application of Division 974 of the Income Tax Assessment Act 1997 for the purposes of Division 820 of that Act
 (1) Division 974 of the Income Tax Assessment Act 1997 applies for the purposes of determining whether, for the purposes of Division 820 of that Act, an interest is a debt interest or an equity interest at any time on or after 1 July 2001 (whether or not the debt and equity test amendments apply to transactions in relation to that interest at that time).
 (2) In this section, debt and equity test amendments has the same meaning as in Part 4 of Schedule 1 to the New Business Tax System (Debt and Equity) Act 2001.

820‑45  Transitional provision—accounting standards and prudential standards
 (1) This section applies to 4 consecutive income years of an entity beginning on or after 1 January 2005.
 (2) Subject to subsection (3), the entity may choose, for any or all of those income years, to use the accounting standards in force under the Corporations Act 2001 immediately before 1 January 2005 (rather than the current accounting standards) for the purpose of calculating amounts applicable to the entity under Division 820 of the Income Tax Assessment Act 1997.
Note 1: Making the choice for an income year does not require the entity to maintain a full set of accounts based on those old accounting standards.
Note 2: The choice is only for the purposes of calculating amounts for the purposes of the thin capitalisation regime.
 (3) If the entity makes a choice under subsection (2) for an income year but an associate entity of that entity does not, the entity may, in working out its associate entity excess amount so far as it relates to that associate entity at a time in that year, use either the accounting standards in force under the Corporations Act 2001 immediately before 1 January 2005 or the current accounting standards.
 (4) If an ADI makes a choice under subsection (2) for an income year, the ADI must also choose to use for that year the prudential standards in force under the Banking Act 1959 immediately before 1 January 2005 (rather than the current prudential standards) for the purpose of calculating amounts applicable to the ADI under Division 820 of the Income Tax Assessment Act 1997.
Note 1: Making the choice for an income year does not require the entity to maintain capital