Document ID: chunk:federal_register_of_legislation:C2010C00578:clause:2_2:p2
Version: federal_register_of_legislation:C2010C00578
Segment Type: clause
Provision Reference: sch 2 cl 2 (pt 2/3)
Character Range: 42855–45651

permanent establishments were an entity (the notional entity) for which those records would be required to be prepared under the *accounting standards or the overseas or international accounting standards, as appropriate; and
 (ii) for the purposes of the statement of financial position or the corresponding statement, as appropriate—the assets, liabilities (including *debt capital) and *equity capital that are attributable to the Australian permanent establishments for that income year were assets, liabilities and equity of the notional entity for that year; and
 (iii) for the purposes of the statement of financial performance or the corresponding statement, as appropriate—the revenues and expenses that are attributable to the Australian permanent establishments for that year were the revenues and expenses of the notional entity for that year; and
 (iv) the *accounting standards, or the overseas or international accounting standards, as appropriate, referred to income years instead of financial years or the corresponding term in the overseas or international accounting standards.

Commissioner's power to exempt from complying with Australian accounting standards

 (4) The Commissioner may decide that an entity, or entities in a class of entities, need not comply with all or any part of the *accounting standards for one or more income years for the purposes of subsection (1A) if the Commissioner is satisfied that it would be unreasonable that the entity, or the entities in that class, be required to do so.

Note: The Commissioner's power under this subsection does not extend to the overseas or international accounting standards.

 (5) The Commissioner:
 (a) may make a decision under subsection (4) in such cases and to such extent as the Commissioner thinks fit; and
 (b) must make the decision in writing; and
 (c) cause a copy of the decision to be published in the Gazette.
The decision has effect despite subsection (1A).

Excluding Australian permanent establishments not covered by applicable double tax treaty

 (6) An entity need not comply with this section for an income year in relation to an *Australian permanent establishment if:
 (a) throughout that year, the entity was, for the purposes of a double tax agreement (within the meaning of Part X of the Income Tax Assessment Act 1936) in relation to a foreign country, a resident of that foreign country (even if the entity was also an Australian resident or a resident of another foreign country); and
 (b) throughout the period during that year when the entity was carrying on its *business at or through that Australian permanent establishment, the Australian permanent establishment was not a permanent establishment within the meaning of that double tax agreement.

Income Tax Assessment Act 1936