Tax and Superannuation Laws Amendment (2013 Measures No. 2) Act 2013 (85 of 2013)

Schedule 8   Taxation of financial arrangements

Part 4   Hedging financial arrangements method

Division 2   Hedging net investments in foreign operations

Income Tax Assessment Act 1997
48   Subsection 230-310(5)

Repeal the subsection, substitute:

(5) Subsection (6) applies if:

(a) a *hedged item is your net investment in a foreign operation (within the meaning of the *accounting principles); and

(b) the foreign operation is carried on through:

(i) a company in which you hold *shares; or

(ii) a company that is a subsidiary of yours (within the meaning of the Corporations Act 2001).

(6) The table in subsection (4) has effect as if:

(a) to the extent that the *hedging financial arrangement hedges a risk or risks in relation to *shares you hold in the company - the reference in that table to the *hedged item were a reference to your interest in those shares; and

(b) to the extent that the hedging financial arrangement hedges a risk or risks in relation to another interest you have in the company - the reference in that table to the hedged item were a reference to that interest.


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