185‑20 Functional currency rules—Austral185‑20 Functional currency rules—Australian permanent establishments

185‑20 Functional currency rules—Australian permanent establishments

(1) Despite section 185‑10, if: (a) a choice under item 2 of the table in subsection 960‑60(1) of the Income Tax Assessment Act 1997 is in effect in relation to the *entity in relation to an *Australian permanent establishment for a period that includes an *MRRT year; and (b) a mining project interest the entity has, or a *pre‑mining project interest the entity *holds, predominantly relates to the activity or business carried on at or through the Australian permanent establishment; section 185‑15 applies, subject to this section, to the mining project interest or pre‑mining project interest. (2) For the purposes of applying section 185‑15 to the mining project interest or *pre‑mining project interest, sections 185‑15 and 185‑25 apply as if: (a) the reference in subsection 185‑15(2) to the *entity’s applicable functional currency (and any later references to that currency), were instead references to the applicable functional currency of the *Australian permanent establishment; and (b) the purpose mentioned in paragraph 185‑15(3)(a) were instead the purpose of working out so much of the *instalment income mentioned in that paragraph as arises from the mining project interest or pre‑mining project interest; and (c) the references in subsection 185‑15(8) and item 1 of the table in subsection 185‑25(1) to the *instalment income were instead references to the amount worked out having regard to paragraph (b).