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