INCOME TAX ASSESSMENT ACT 1997 - SECT 775.300 Tax consequences of choosing retranslation for arrangement

INCOME TAX ASSESSMENT ACT 1997 - SECT 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.

  (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.