Document ID: chunk:federal_register_of_legislation:C2024C00818:section:58j:p1
Version: federal_register_of_legislation:C2024C00818
Segment Type: section
Provision Reference: s 58J (pt 1/4)
Character Range: 204253–206904

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 financial year 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 financial year;
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 financial year—that exchange rate; or
 (d) if the person elects to use the exchange rate applicable on the last day of the financial year—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 financial year 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 financial year; and
 (b) the person does not make an election under paragraph (1)(c) or (d) of this section in relation to the financial year;
the person is taken to have made an election under paragraph (1)(c) of this section in relation to the financial year.

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

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 financial year; and
 (b) at the time when the person made the election, the person was the head