Document ID: chunk:federal_register_of_legislation:F2024C01248:reg:2:p1
Version: federal_register_of_legislation:F2024C01248
Segment Type: reg
Provision Reference: reg 2 (pt 1/10)
Character Range: 186112–188896

2                            Paragraph 2(3)(a)  activities  (or, if the entity is an attributable taxpayer in relation to a CFC, the use of the rate would not be appropriate having regard to the CFC's business or activities)

960‑80.02  Translation rules for an attributable taxpayer of a CFC—translation into applicable functional currency
  For the purposes of subsection 960‑80(7) of the Act, if:
 (a) an entity is an attributable taxpayer in relation to a CFC; and
 (b) the CFC has prepared financial accounts in accordance with standards to which subsection 820‑960(1C) or (1D) of the Act relates; and
 (c) those financial accounts translate amounts into the applicable functional currency using particular exchange rates; and
 (d) the entity wishes to translate an amount into the applicable functional currency, using the exchange rate used to translate a corresponding amount in the financial accounts;
the entity must translate all amounts into the applicable functional currency using the exchange rates that were used in the financial accounts to translate corresponding amounts.

960‑80.03  Translation rules—translation from applicable functional currency into Australian currency
 (1) For the purposes of subsection 960‑80(7) of the Act, this section provides requirements that an entity must comply with in translating an amount from the applicable functional currency into Australian currency.

Amount that is not the attributable income of a CFC
 (2) If, on or after 27 April 2005, an entity translates an amount that is not the attributable income of a CFC from the applicable functional currency into Australian currency on a day in accordance with an item of the table in subsection 960‑80(1) of the Act, the entity must translate the amount using:
 (a) an exchange rate that is an average of all of the exchange rates during the period, not exceeding 12 months, in which the entity carries on the relevant business or other activity; or
 (b) if the entity makes an election in writing to use the exchange rate applicable on the last day of the entity's income year—that exchange rate.

Amount that is the attributable income of a CFC
 (3) If, on or after 27 April 2005, an entity that is an attributable taxpayer in relation to a CFC translates an amount that is the attributable income of a CFC from the applicable functional currency into Australian currency on a day in accordance with an item of the table in subsection 960‑80(1) of the Act, the entity must translate the amount using:
 (a) an exchange rate that is an average of all of the exchange rates during the period, not exceeding 12 months, in which the CFC carries on the relevant business or other activity; or
 (b) if the entity makes an election in writing to use the exchange rate applicable on