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-D - Qualifying forex accounts that pass the limited balance test  

Operative provisions

SECTION 775-260   Modification of tax recognition time  

Forex realisation event 2

775-260(1)    
If:

(a) forex realisation event 2 happens in relation to a *qualifying forex account that:

(i) you hold at the time of the event; and

(ii) does not pass the limited balance test at the time of the event; and

(b) apart from this subsection, the tax recognition time, worked out using the table in subsection 775-45(7) , happened at a time when the account passed the limited balance test;

section 775-45 applies to you as if the tax recognition time were the most recent time before the forex realisation event when the account ceased to pass the limited balance test (despite subsection 775-45(7) ).

Forex realisation event 4

775-260(2)    
If:

(a) forex realisation event 4 happens in relation to a *qualifying forex account that:

(i) you hold at the time of the event; and

(ii) does not pass the limited balance test at the time of the event; and

(b) apart from this subsection, the tax recognition time, worked out using the table in subsection 775-55(7) , happened at a time when the account passed the limited balance test;

section 775-55 applies to you as if the tax recognition time were the most recent time before the forex realisation event when the account ceased to pass the limited balance test (despite subsection 775-55(7) ).