Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_3:p14
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 14/26)
Character Range: 137617–140440

that:
 (a) is attributable to that Australian permanent establishment; but
 (b) is not attributable to the *OB activities of the foreign bank.

Subdivision 820‑G—Calculating the average values

Guide to Subdivision 820‑G

820‑625  What this Subdivision is about

      This Subdivision sets out the methods of calculating the average values for the purposes of this Division. It also includes special rules about values and valuation that are relevant to that calculation.

Note: Section 820‑25 of the Income Tax (Transitional Provisions) Act 1997 provides for a transitional rule that affects the operation of this Subdivision in relation to an income year that begins before 1 July 2002 and ends before 30 June 2003.

Table of sections

How to calculate the average values

820‑630 Methods of calculating average values
820‑635 The opening and closing balances method
820‑640 The 3 measurement days method
820‑645 The frequent measurement method

Special rules about values and valuation

820‑675 Amount to be expressed in Australian currency
820‑680 Valuation of assets, liabilities and equity capital
820‑685 Valuation of debt capital
820‑690 Commissioner's power

[This is the end of the Guide.]

How to calculate the average values

820‑630  Methods of calculating average values

Methods of calculation for entities that are not ADIs

 (1) An entity to which Subdivision 820‑B or 820‑C applies for a period that is all or a part of an income year must use one of the following methods to calculate the average value of a matter mentioned in that Subdivision for the purposes of that application:
 (a) the method set out in section 820‑635 (the opening and closing balances method);
 (b) the method set out in section 820‑640 (the 3 measurement days method);
 (c) the method set out in section 820‑645 (the frequent measurement method).

Note 1: This subsection therefore applies only to an outward investing entity (non‑ADI) or an inward investing entity (non‑ADI).

Note 2: An entity cannot apply the 3 measurement days method if it is unable to meet the requirements in subsection 820‑640(1). An entity's ability to apply that method may therefore be limited.

 (2) The entity must use the same method to calculate all such average values for that period for the purposes of that application.

Commissioner's power

 (3) If the entity fails to comply with subsection (2), the Commissioner may, irrespective of the methods used by the entity, recalculate all the average values for the entity and that period by using the opening and closing balances method.

Method of calculation for ADIs

 (4) An entity to which Subdivision 820‑D or 820‑E applies for a period that is all or a part of an income year must use the frequent measurement method to calculate the average value of a matter mentioned in that