Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 535

             (1)  Subject to this section, if it is practicable to apply the market value method in respect of the taxpayer's interest, or all of the taxpayer's interests in a particular class or classes, in a FIF in respect of the notional accounting period, the market value method is to be so applied.

             (2)  Subject to this section, if it is not practicable to apply the market value method in respect of the taxpayer's interest, or all of the taxpayer's interests in a particular class, in a FIF in respect of the notional accounting period, the deemed rate of return method is to be applied in respect of the interest or the interests in that class.

             (3)  Subject to subsections (4) and (5), the taxpayer may elect to apply the calculation method in respect of all of the taxpayer's interests in a FIF in respect of a notional accounting period, and if such an election is made, the calculation method is to be so applied.

             (4)  The taxpayer is not entitled to make an election under subsection (3) in relation to a FIF in relation to a notional accounting period ( the current notional accounting period ) if:

                     (a)  the taxpayer has made an election under that subsection in relation to the FIF in relation to a previous notional accounting period ending after the day on which the   Taxation Laws Amendment Act (No. 2) 1993 receives the Royal Assent; and

                     (b)  the taxpayer has not made an election under that subsection in relation to the FIF in relation to every notional accounting period (if any) in respect of which the operative provision applied that has occurred after the previous notional accounting period and before the current notional accounting period.

          (4A)  Subsection (4) does not prevent the taxpayer from making an election under subsection (3) in relation to a FIF in relation to a notional accounting period if the taxpayer also makes a choice under subsection 559A(1) in relation to the FIF in relation to the notional accounting period.

             (5)  The taxpayer is not entitled to make an election under subsection (3) in relation to a FIF unless the taxpayer also makes an election in relation to the FIF under subsection 486(3).

             (6)  This section has effect subject to section 577.