Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 775 - Foreign currency gains and losses  

Subdivision 775-C - Roll-over relief for facility agreements  

Operative provisions

SECTION 775-215   Discharge of obligation to pay the principal amount of a notional loan under a facility agreement - forex realisation event 6  

Forex realisation event 6

775-215(1)    
Forex realisation event 6 happens if:

(a) you discharge an obligation, or a part of an obligation, to pay the *foreign currency principal amount of a notional loan attached to an *eligible security issued by you under a *facility agreement; and

(b) you have made a choice for roll-over relief for the agreement, and that choice is in effect.

Time of event

775-215(2)    
The time of the event is when you discharge the obligation or the part of the obligation.

Forex realisation gain

775-215(3)    
You make a forex realisation gain if:

(a) the amount of the obligation, or the part of the obligation, at the start time of the notional loan, exceeds the amount you paid in order to discharge the obligation or the part of the obligation; and

(b) some or all of the excess is attributable to a *currency exchange rate effect.

The amount of the forex realisation gain is so much of the excess as is attributable to a currency exchange rate effect.

Note:

For currency exchange rate effect , see section 775-105 .

Forex realisation loss

775-215(4)    
You make a forex realisation loss if:

(a) the amount of the obligation, or the part of the obligation, at the start time of the notional loan, falls short of the amount you paid in order to discharge the obligation or the part of the obligation; and

(b) some or all of the shortfall is attributable to a *currency exchange rate effect.

The amount of the forex realisation loss is so much of the shortfall as is attributable to a currency exchange rate effect.

Note:

For currency exchange rate effect , see section 775-105 .

Exempt income etc.

775-215(5)    
For the purposes of the application of sections 775-20 , 775-25 and 775-35 to the event, assume that the notional loan had been an actual loan.