Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_12:p12
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 12/39)
Character Range: 168493–171362

of sections
230‑390 Objects of this Subdivision
230‑395 Election to rely on financial reports
230‑400 Financial reports election where differing income and accounting years
230‑405 Commissioner discretion to waive requirements in paragraphs 230‑395(2)(c) and (e)
230‑410 Financial arrangements to which the election applies
230‑415 Financial arrangements not covered by election
230‑420 Effect of election to rely on financial reports
230‑425 When election ceases to apply
230‑430 Balancing adjustment if election ceases to apply

230‑390  Objects of this Subdivision
  The objects of this Subdivision are:
 (a) to reduce administration and compliance costs by allowing you to align the tax treatment of your gains and losses from a *financial arrangement with the accounting treatment that applies to the arrangement; and
 (b) to achieve those objects without your obtaining inappropriate tax benefits.

230‑395  Election to rely on financial reports

Election
 (1) You may make an election to rely on financial reports if you are eligible under subsection (2) to make the election for the income year in which you make the election.

Eligibility to make election
 (2) You are eligible to make an election to rely on financial reports for an income year if:
 (a) you prepare a financial report for that income year in accordance with:
 (i) the *accounting standards; or
 (ii) if those standards do not apply to the preparation of the financial report—comparable accounting standards made under a *foreign law that apply to the preparation of the financial report under a foreign law; and
 (b) the financial report is audited in accordance with:
 (i) the *auditing standards; or
 (ii) if the auditing standards do not apply to the auditing of the financial report—comparable auditing standards made under a foreign law; and
 (c) your auditor has not qualified the auditor's report on your financial report for that income year or any of the last 4 financial years in a respect that is relevant to the taxation treatment of *financial arrangements; and
 (d) your accounting systems and controls and your internal governance processes are reliable; and
 (e) no report of an audit or review conducted in the income year, or any of the preceding 4 income years, has included an adverse assessment of your accounting systems in a respect that is relevant to the taxation treatment of financial arrangements.
Note 1: Paragraph (b)—section 230‑500 allows regulations to be made specifying particular foreign accounting and auditing standards as ones that are to be treated as comparable with Australian accounting and auditing standards for the purposes of this Division.
Note 2: For the purposes of paragraphs (c) and (e), a qualification or assessment may be relevant to the taxation treatment of financial arrangements even though it does not deal with the amount or timing