Document ID: chunk:federal_register_of_legislation:C2011C00549:clause:3_58b:p1
Version: federal_register_of_legislation:C2011C00549
Segment Type: clause
Provision Reference: sch 3 cl 58B (pt 1/2)
Character Range: 19360–21827

58B  Person may elect to be bound by the functional currency rules

 (1) A person may elect to be bound by the functional currency rules for the purposes of this Act, with effect from the start of:
 (a) if the election was made by the person within 30 days after the day on which the Tax Laws Amendment (2009 Measures No. 3) Act 2009 received the Royal Assent—the year of tax beginning on 1 July 2009; or
 (b) in any other case—the year of tax following the one in which the person made the election.

 (2) An election under subsection (1) must be in writing.

 (3) An election under subsection (1) continues in effect until a withdrawal of the election takes effect (see section 58L).

Designated company group—deemed election etc.

 (4) If:
 (a) a person has made an election under subsection (1); and
 (b) at the time when the person made the election, the person was the head company of a designated company group; and
 (c) the election is in effect for a year of tax; and
 (d) when the election took effect, the person was the head company of a designated company group; and
 (e) immediately before the end of the year of tax, the person is the head company of a designated company group (the current designated company group);
then:
 (f) each other company that was in the current designated company group immediately before the end of the year of tax is taken to have made an election under subsection (1); and
 (g) an election covered by paragraph (f):
 (i) is taken to have been in effect for the year of tax; and
 (ii) supersedes any previous election made by the other company that was in effect for the year of tax.

 (5) If:
 (a) a person has made an election under subsection (1); and
 (b) at the time when the person made the election, the person was the head company of a designated company group; and
 (c) the election is in effect for a year of tax; and
 (d) during the year of tax, the person ceased to be the head company of the designated company group; and
 (e) immediately before the end of the year of tax, another company is the head company of the designated company group;
then:
 (f) the company covered by paragraph (e) is taken to have made an election under subsection (1); and
 (g) an election covered by paragraph (f):
 (i) is taken to have been in effect for the year of tax; and
 (ii) supersedes any previous election made by the company that was in effect for the year of tax; and
 (h) each other company that was in the designated