INCOME TAX ASSESSMENT ACT 1997 - SECT 775.315 Balancing adjustment when election ceases to apply to arrangement

INCOME TAX ASSESSMENT ACT 1997 - SECT 775.315

  (1)   This section applies if:

  (a)   you make a * foreign exchange retranslation election; and

  (b)   the election ceases to have effect or ceases to apply to an * arrangement.

  (2)   You are taken, for the purposes of this Division, to have:

  (a)   disposed of the * arrangement for its fair value immediately before the election ceases to have effect or ceases to apply to the arrangement; and

  (b)   reacquired the arrangement at its fair value immediately after the election ceases to have effect or ceases to apply to the arrangement.

Note:   Paragraph   (a) means that there would be a forex realisation event 9 in relation to the arrangement.

Table of Subdivisions

802 - A   Conduit foreign income