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-F - Retranslation under foreign exchange retranslation election under Subdivision 230-D  

Guide to Subdivision 775-F

SECTION 775-300   Tax consequences of choosing retranslation for arrangement  

775-300(1)    
A *forex realisation gain or *forex realisation loss you make as a result of forex realisation event 1, 2, 3, 4, 5 or 8 is disregarded if:

(a) the event happens in relation to an *arrangement that you hold; and

(b) you have made a *foreign exchange retranslation election that applies to the arrangement; and

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

775-300(2)    
If:

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

(b) you have made a *foreign exchange retranslation election that applies to the arrangement; and

(c) the election 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 .