Document ID: chunk:federal_register_of_legislation:C2010C00648:clause:2_49
Version: federal_register_of_legislation:C2010C00648
Segment Type: clause
Provision Reference: sch 2 cl 49
Character Range: 119152–120324

49  At the end of Subdivision 717‑G
Add:

717‑320  Exit history rule does not affect when leaving entity may elect to value trading stock at market value

  Section 701‑40 (the exit history rule) does not affect the time limit set by subsection 70‑70(3) for the leaving entity to make an election under subsection 70‑70(2).

Note: Subsection 70‑70(2) lets the leaving entity elect to value at market value interests in a FIF that are trading stock of the entity.

Example: At the leaving time the single entity rule stopped applying to the leaving entity, causing it to start holding as trading stock an interest in a FIF that the head company of the group had earlier held as trading stock. The leaving entity had not held an interest in any FIF as trading stock before becoming a subsidiary member of the group.

 Subsection 70‑70(3) and this section let that entity make an election under subsection 70‑70(2) before lodging its income tax return for the first income year that:

(a) ends after the leaving time; and

(b) is an income year in which a notional accounting period for the FIF ends.

Division 2—Foreign dividend accounts

Income Tax Assessment Act 1997