Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-1
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CAPITAL GAINS AND LOSSES: GENERAL TOPICS
Division 118
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Exemptions
Subdivision 118-A
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General exemptions
Exempt or loss-denying transactions
SECTION 118-55 118-55 Foreign currency hedging gains and losses
A *capital gain or *capital loss you make from a contract you entered into solely to reduce the risk of financial loss you may suffer from currency exchange rate fluctuations is disregarded if the contract relates to:
(a) a liability you have to make a payment under another contract; or
(b) a *CGT asset that is a right you *acquired before 20 September 1985 to receive money under another contract.
View history note
Hide history noteSECTION 118-55 118-55 Foreign currency hedging gains and losses
A *capital gain or *capital loss you make from a contract you entered into solely to reduce the risk of financial loss you may suffer from currency exchange rate fluctuations is disregarded if the contract relates to:
(a) a liability you have to make a payment under another contract; or
(b) a *CGT asset that is a right you *acquired before 20 September 1985 to receive money under another contract.
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