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INCOME TAX ASSESSMENT ACT 1997 - SECT 230.305

Table of events and allocation rules

  (1)   For the purposes of paragraph   230 - 300(5)(a), the following table lists events and their consequences:

 

Table of events and allocation rules

Item

If this event occurs ...

Your gain or loss is allocated ...

1

(a) you revoke the hedging designation; or

(b) you redesignate your * hedging financial arrangement; or

(c) you cease to meet the requirement of section   230 - 365 in relation to your hedging financial arrangement

over income years according to the basis determined under subsection   230 - 360(1).

2

(a) you cease to have the * hedged item or all of the hedged items; or

(b) you cease to expect that the hedged item or items will come into existence; or

(c) you cease to expect that you will have the hedged item or items

to the income year in which the event occurs.

2A

(a) you cease to have one or more (but not all) of the * hedged items; or

(b) you cease to expect that one or more (but not all) of the hedged items will come into existence; or

(c) you cease to expect that you will have one or more (but not all) of the hedged items

(a) to the extent to which the gain or loss is reasonably attributable to those one or more hedged items--to the income year in which the event occurs; and

(b) to the extent to which the gain or loss is reasonably attributable to the remaining hedged item or items--over income years according to the basis determined under subsection   230 - 360(1).

3

a risk being hedged by your * hedging financial arrangement ceases to exist

to the income year in which the risk ceases to exist.

  (2)   For the purposes of item   2A of the table in subsection   (1), determine the extent to which the gain or loss is reasonably attributable to a particular * hedged item having regard to the following:

  (a)   the fair value of the hedged item;

  (b)   the length of the period over which you have held the hedged item;

  (c)   commercially accepted valuation principles;

  (d)   any other relevant factors.


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