New Business Tax System (Taxation of Financial Arrangements) Act (No. 1) 2003 (133 of 2003)

25

You make a forex realisation gain as a result of forex realisation event 4, and:

(a) you incurred the obligation to pay foreign currency:

(i) in return for the acquisition of a CGT asset; or

(ii) as the second, third, fourth or fifth element of the cost base of a CGT asset; and

(b) the foreign currency became due for payment within 12 months after the time when:

(i) in the case of the acquisition of a CGT asset - you acquired the CGT asset; or

(ii) in the case of the second, third, fourth or fifth element of the cost base of a CGT asset - you incurred the relevant expenditure

total cost base and reduced cost base

section 775-70

26

You make a forex realisation loss as a result of forex realisation event 4, and:

(a) you incurred the obligation to pay foreign currency:

(i) in return for the acquisition of a CGT asset; or

(ii) as the second, third, fourth or fifth element of the cost base of a CGT asset; and

(b) the foreign currency became due for payment within 12 months after the time when:

(i) in the case of the acquisition of a CGT asset - you acquired the CGT asset; or

(ii) in the case of the second, third, fourth or fifth element of the cost base of a CGT asset - you incurred the relevant expenditure

total cost base and reduced cost base

section 775-75

27

You acquire foreign currency as a result of forex realisation event 2

first element of cost base and reduced cost base

section 775-125