Section EX 69 — Income Tax Act 2007: Change of FIF’s balance date

EX 69 Change of FIF’s balance date When this section applies (1) This section applies when a person— (a) has an attributing interest in a FIF; and (b) calculates their FIF income or loss from the FIF using the attributable FIF income method; and (c) has calculated FIF income or loss from the FIF on the basis of 1 accounting year (the old accounting year ); and (d) wants to change to use a different accounting year (the new accounting year ) for the calculations. Commissioner’s consent (2) The person may make the change only if the Commissioner agrees. Commissioner’s reasons (3) The Commissioner may take into account any relevant factors when making the decision, including— (a) whether the change is sought because ownership of the FIF has changed; and (b) whether the change is sought because of taxation or other legal requirements in a country where the FIF is resident or does business; and (c) whether the change would postpone liability to income tax on FIF income. New accounting year (4) If the change is approved, the person may use the new accounting year. Limit on transitional deferral (5) If, in order to make the transition, the transitional accounting period is more than 1 year and ends in a later income year than the old accounting year ends in, and that would result in an amount of FIF income being derived in the later income year, subsection (6) applies and section CQ 5(1)(g) (When FIF income arises) does not. Income pro-rated over whole period (6) For the transitional accounting period, the FIF income is divided by the number of days in the period and the resulting amount is FIF income of the person derived on each day in the period. Defined in this Act: accounting period , accounting year , amount , attributable FIF income method , attributing interest , business , Commissioner , FIF , FIF income , income tax , income year , loss , year , Compare: 2004 No 35 s EX 57 Section EX 69(1)(b): amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 48(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 69 list of defined terms accounting profits method : repealed (with effect on 1 July 2011), on 7 May 2012, by section 48(2)(a) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 69 list of defined terms attributable FIF income method : inserted (with effect on 1 July 2011), on 7 May 2012, by section 48(2)(b) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 69 list of defined terms branch equivalent method : repealed (with effect on 1 July 2011), on 7 May 2012, by section 48(2)(a) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).