Taxation (International and Other Provisions) Act 2010 section 487

Actual financial statements ignored if for too long a period or too late

Section 487 sets out the circumstances in which an entity's actual financial statements must be disregarded for the purposes of the corporate interest restriction rules because they cover too long a period or were prepared too late.

• Financial statements drawn up by or on behalf of any entity will be ignored for the purposes of Part 10 (corporate interest restriction) if they fail to meet certain time requirements.
• Statements covering a period of more than 18 months are disregarded — so financial statements must relate to a period of 18 months or shorter to be accepted.
• Statements that are drawn up more than 30 months after the start of the period they cover are also disregarded — meaning they must be finalised within that 30-month window.
• Both conditions operate independently: failing either one is enough for the financial statements to be ignored, even if the other condition is met.