INCOME TAX ASSESSMENT ACT 1997 - SECT 230.375 Balancing adjustment if election ceases to apply
INCOME TAX ASSESSMENT ACT 1997 - SECT 230.375
Balancing adjustment if election ceases to apply(1) This section applies if a * hedging financial arrangement election ceases to have effect under subsection 230 - 370(1).
(2) You are taken, for the purposes of this Division, to have:
(a) disposed of each * hedging financial arrangement to which the election applies for its fair value immediately before the election ceases to have effect; and
(b) reacquired the arrangement at its fair value immediately after the election ceases to have effect.
(3) To avoid doubt, this Subdivision applies, for the purposes
of working out the consequences of the disposal referred to in paragraph
(2)(a), as if the * hedging financial arrangement were one to which the
* hedging financial arrangement election applied at the time of the disposal.