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-E - Retranslation for qualifying forex accounts  

Operative provisions

SECTION 775-280   Tax consequences of choosing retranslation for an account  

775-280(1)    
A *forex realisation gain or *forex realisation loss you make as a result of forex realisation event 2 or 4 is disregarded if:

(a) the event happens in relation to a *qualifying forex account that you hold; and

(b) you have made a choice for retranslation for the account; and

(c) the choice is in effect when the event happens.

775-280(2)    
If:

(a) CGT event C1 or C2 happens in relation to a *qualifying forex account that you hold at the time of the event; and

(b) you have made a choice for retranslation for the account; and

(c) the choice is in effect when the event happens;

disregard so much of any *capital gain or *capital loss you make as a result of the event as is attributable to a *currency exchange rate effect.

Note:

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