Document ID: chunk:federal_register_of_legislation:C2011C00549:clause:3_58j:p1
Version: federal_register_of_legislation:C2011C00549
Segment Type: clause
Provision Reference: sch 3 cl 58J (pt 1/4)
Character Range: 28012–30551

58J  Translation of taxable profit, or excess closing‑down expenditure, into Australian currency

 (1) If:
 (a) paragraph 58D(1)(d) requires the translation of the taxable profit of a person of a year of tax in relation to a petroleum project; or
 (b) paragraph 58D(1)(e) requires the translation of an amount of excess closing‑down expenditure for the purpose of working out a credit to which a person is entitled under section 46 in relation to a year of tax;
that taxable profit or excess closing‑down expenditure, as the case may be, is to be translated using:
 (c) if the person elects to use an exchange rate that is an average of all the exchange rates during the year of tax—that exchange rate; or
 (d) if the person elects to use the exchange rate applicable on the last day of the year of tax—that exchange rate.

 (2) An election under paragraph (1)(c) or (d):
 (a) must be in writing; and
 (b) is irrevocable.

Default election

 (3) If:
 (a) either:
 (i) paragraph 58D(1)(d) requires the translation of the taxable profit of a person of a year of tax in relation to a petroleum project; or
 (ii) paragraph 58D(1)(e) requires the translation of an amount of excess closing‑down expenditure for the purpose of working out a credit to which a person is entitled under section 46 in relation to a year of tax; and
 (b) the person does not make an election under paragraph (1)(c) or (d) of this section in relation to the year of tax;
the person is taken to have made an election under paragraph (1)(c) of this section in relation to the year of tax.

Continuity of election

 (4) If:
 (a) a person has made an election under section 58B; and
 (b) that election is in effect for 2 or more consecutive years of tax; and
 (c) the person made an election under paragraph (1)(c) of this section in relation to the first of those years of tax;
the person is taken to have made an election under paragraph (1)(c) of this section in relation to each remaining year of tax.

 (5) If:
 (a) a person has made an election under section 58B; and
 (b) that election is in effect for 2 or more consecutive years of tax; and
 (c) the person made an election under paragraph (1)(d) of this section in relation to the first of those years of tax;
the person is taken to have made an election under paragraph (1)(d) of this section in relation to each remaining year of tax.

Designated company group—deemed election under paragraph (1)(c) etc.

 (6) If:
 (a) a person has made an election under paragraph (1)(c) in relation to a year of tax; and