INCOME TAX ASSESSMENT ACT 1997 - SECT 775.40 Disposal of foreign currency or right to receive foreign currency--forex realisation event 1
INCOME TAX ASSESSMENT ACT 1997 - SECT 775.40
Disposal of foreign currency or right to receive foreign currency--forex realisation event 1(1) Forex realisation event 1 is * CGT event A1 that happens if you dispose of:
(b) a right, or a part of a right, to receive foreign currency.
Note: For extended meaning of right to receive foreign currency , see section 775 - 135.
(2) For the purposes of this section, use subsection 104 - 10(2) to work out whether you have disposed of:
(b) a right, or a part of a right, to receive foreign currency.
Note: Under subsection 104 - 10(2), a disposal requires a change of ownership.
(3) For the purposes of this section, subsection 104 - 10(3) is modified so that the time of the event is when:
(a) the * foreign currency is disposed of; or
(b) the right, or the part of the right, is disposed of.
(4) You make a forex realisation gain if:
(a) you make a * capital gain from the event; and
(b) some or all of the capital gain is attributable to a * currency exchange rate effect.
The amount of the forex realisation gain is so much of the capital gain as is attributable to a currency exchange rate effect.
Note: For currency exchange rate effect , see section 775 - 105.
(5) For the purposes of paragraph (4)(a), Part 3 - 1 is modified so that section 118 - 20 is disregarded in working out the * capital gain.
Note: Section 118 - 20 deals with reducing capital gains if an amount is otherwise assessable.
(6) You make a forex realisation loss if:
(a) you make a * capital loss from the event; and
(b) some or all of the capital loss is attributable to a * currency exchange rate effect.
The amount of the forex realisation loss is so much of the capital loss as is attributable to a currency exchange rate effect.
Note: For currency exchange rate effect , see section 775 - 105.
(7) For the purposes of this section, disregard Division 114.
Note: Division 114 deals with indexation of the cost base.
Foreign currency hedging gains and losses
(8) For the purposes of this section, disregard section 118 - 55.
Note: Section 118 - 55 deals with foreign currency hedging gains and losses.
(9) For the purposes of this section, if the * capital proceeds from the event are more or less than the * market value of:
(a) the * foreign currency; or
(b) the right, or the part of the right;
the capital proceeds from the event are taken to be the market value. (The
market value is worked out as at the time of the event.)