Income Tax Assessment Act 1997
View history note
Hide history noteOption to buy foreign currency
775-65(1)
The following table applies to an option to buy a particular *foreign currency if the exercise price is payable in another foreign currency:
| Option to buy foreign currency | |||
| Item | If you are … | and both of these events happen when the option is exercised … | this is the result … |
| 1 | the entity who is capable of exercising the option | (a) forex realisation event 1;
(b) forex realisation event 4 |
ignore forex realisation event 4. |
| 2 | the entity who is capable of exercising the option | (a) forex realisation event 2;
(b) forex realisation event 4 |
ignore forex realisation event 4. |
| 3 | the entity who granted the option | (a) forex realisation event 3;
(b) forex realisation event 4 |
ignore forex realisation event 3. |
Option to sell foreign currency
775-65(2)
The following table applies to an option to sell a particular *foreign currency if the exercise price is payable in another foreign currency:
| Option to sell foreign currency | |||
| Item | If you are … | and both of these events happen when the option is exercised … | this is the result … |
| 1 | the entity who is capable of exercising the option | (a) forex realisation event 3;
(b) forex realisation event 5 |
ignore forex realisation event 3. |
| 2 | the entity who granted the option | (a) forex realisation event 3;
(b) forex realisation event 4 |
ignore forex realisation event 3. |
Forward contracts
775-65(3)
The following table applies to a contract to buy a particular *foreign currency in return for another foreign currency:
| Forward contracts | ||
| Item | If both of these events happen when the contract is carried out … | this is the result … |
| 1 | (a) forex realisation event 1; | ignore forex realisation event 4. |
| (b) forex realisation event 4 | ||
| 2 | (a) forex realisation event 2; | ignore forex realisation event 4. |
| (b) forex realisation event 4 |
Residual rule
775-65(4)
If:
(a) 2 or more of forex realisation events 1, 2, 3, 4 and 5 happen to you at the same time in relation to the same rights and/or obligations; and
(b) none of the above subsections applies;
apply the forex realisation event that is most appropriate, and ignore the remaining event or events.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
