Document ID: chunk:federal_register_of_legislation:C2010C00611:clause:4_5:p1
Version: federal_register_of_legislation:C2010C00611
Segment Type: clause
Provision Reference: sch 4 cl 5 (pt 1/2)
Character Range: 190638–194792

5                  (a) you are a *transferor trust; and                                                                                                                                                                                                                 (a) first, for the purpose of working out, for the income year, your attributable income (within the meaning of Division 6AAA of Part III of the Income Tax Assessment Act 1936):
                   (b) you have made a choice under item 5 of the table in subsection 960‑60(1) in relation to the trust, and that choice is in effect for an income year                                                                                               (i) an amount that is not in the *applicable functional currency is to be translated into the applicable functional currency; and
                                                                                                                                                                                                                                                                        (ii) the definition of foreign currency in subsection 995‑1(1) does not apply; and
                                                                                                                                                                                                                                                                        (iii) the applicable functional currency is taken not to be a foreign currency; and
                                                                                                                                                                                                                                                                        (iv) Australian currency and any other currency (except the applicable functional currency) are taken to be foreign currencies; and
                                                                                                                                                                                                                                                                        (b) second, the attributable income is to be translated into Australian currency.

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.

Examples of an amount

 (2) The following are examples of an amount:
 (a) an amount of *ordinary income;
 (b) an amount of an expense;
 (c) an amount of an obligation;
 (d) an amount of a liability;
 (e) an amount of a receipt;
 (f) an amount of a payment;
 (g) an amount of consideration;
 (h) a value;
 (i) a monetary limit or other amount set out in this Act or any other law of the Commonwealth.

 (3) The amounts set out in paragraphs (2)(b) to (i) may be amounts on revenue account, capital account or otherwise.

Amounts that are elements in the calculation of other amounts

 (4) In applying this section:
 (a) first, translate any amounts that are elements in the calculation of other amounts (except *special accrual amounts); and
 (b) then, calculate the other amounts.

Special accrual amounts

 (5) In applying this section:
 (a) calculate a *special accrual amount without translation and without applying the first rule set out in the relevant item of the table in subsection (1); and
 (b) then, translate the special accrual amount to Australian currency for the purposes of applying the second rule set out in the relevant item of the table in subsection (1).

Special translation rules

 (6) Subsection 960‑50(6) has effect, in relation to the translation of an amount into the *applicable functional currency, as if each reference in that subsection to Australian currency were a reference to the applicable functional currency.

Regulations about translation

 (7) An entity must comply with the regulations (if any) in translating an amount into:
 (a) the *applicable functional currency; or
 (b) Australian currency.

Note: For example, the regulations could require the use of a