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

Schedule 4   Foreign currency

Part 1   Amendments

Income Tax Assessment Act 1997

49   Section 104-5 (after table item relating to CGT event K9)

Insert:

50 After section 104-255

Insert:

104-260 Certain short-term forex realisation gains: CGT event K10

(1) CGT event K10 happens if:

(a) you make a *forex realisation gain as a result of forex realisation event 2; and

(b) item 1 of the table in subsection 775-70(1) applies.

(2) The time of the event is when the forex realisation event happens.

(3) You make a capital gain equal to the *forex realisation gain.

Note: You cannot make a capital loss under CGT event K10. However, if you make a forex realisation loss covered by item 1 of the table in subsection 775-75(1), you will make a capital loss under CGT event K11 (see section 104-265).

104-265 Certain short-term forex realisation losses: CGT event K11

(1) CGT event K11 happens if:

(a) you make a *forex realisation loss as a result of forex realisation event 2; and

(b) item 1 of the table in subsection 775-75(1) applies.

(2) The time of the event is when the forex realisation event happens.

(3) You make a capital loss equal to the *forex realisation loss.

Note: You cannot make a capital gain under CGT event K11. However, if you make a forex realisation gain covered by item 1 of the table in subsection 775-70(1), you will make a capital gain under CGT event K10 (see section 104-260).