Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 775.10

                   The objects of this Division are as follows:

                     (a)  to recognise * foreign currency gains and losses for income tax purposes;

                     (b)  to quantify those gains and losses by reference to the change in the Australian dollar value of rights and obligations;

                     (c)  to treat certain foreign currency denominated financing facilities that are the economic equivalent of a loan as if the relevant facility were a loan;

                     (d)  to reduce compliance costs by not requiring the recognition of certain low-value foreign currency gains and losses that involve substantial calculations.

Table of sections

775-15      Forex realisation gains are assessable

775-20      Certain forex realisation gains are exempt income

775-25      Certain forex realisation gains are non-assessable non-exempt income

775-27      Certain forex realisation gains are non-assessable non-exempt income

775-30      Forex realisation losses are deductible

775-35      Certain forex realisation losses are disregarded

775-40      Disposal of foreign currency or right to receive foreign currency--forex realisation event 1

775-45      Ceasing to have a right to receive foreign currency--forex realisation event 2

775-50      Ceasing to have an obligation to receive foreign currency--forex realisation event 3

775-55      Ceasing to have an obligation to pay foreign currency--forex realisation event 4

775-60      Ceasing to have a right to pay foreign currency--forex realisation event 5

775-65      Only one forex realisation event to be counted

775-70      Tax consequences of certain short-term forex realisation gains

775-75      Tax consequences of certain short-term forex realisation losses

775-80      You may choose not to have sections 775-70 and 775-75 apply to you

775-85      Forex cost base of a right to receive foreign currency

775-90      Forex entitlement base of a right to pay foreign currency

775-95      Proceeds of assuming an obligation to pay foreign currency

775-100    Net costs of assuming an obligation to receive foreign currency

775-105    Currency exchange rate effect

775-110    Constructive receipts and payments

775-115    Economic set-off to be treated as legal set-off

775-120    Non-arm's length transactions

775-125    CGT consequences of the acquisition of foreign currency as a result of forex realisation event 2 or 3

775-130    Certain deductions not allowable

775-135    Right to receive or pay foreign currency

775-140    Obligation to pay or receive foreign currency

775-145    Application of forex realisation events to currency and fungible rights and obligations

775-150    Transitional election

775-155    Applicable commencement date

775-160    Exception--event happens before the applicable commencement date

775-165    Exception--currency or right acquired, or obligation incurred, before the applicable commencement date

775-168    Exception--disposal or redemption of traditional securities

775-175    Application to things happening before commencement