Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 832.135

    If:

  (a)   a payment has any of the following effects:

  (i)   it gives rise to a deduction;

  (ii)   it gives rise to a * foreign income tax deduction;

  (iii)   it is * subject to Australian income tax;

  (iv)   it is * subject to foreign income tax; and

  (b)   for the purposes of this Division, the amount of one or more such effects is to be translated under Subdivision   960 - C into an entity's * applicable functional currency, or into Australian currency;

then it is reasonable for the purposes of item   11A of the table in subsection   960 - 50(6) (as modified by the regulations) to apply an exchange rate to each translation so as best to achieve a consistent measure of the extent to which the payment had each such effect.

Note:   Item   11A is added to the table in subsection   960 - 50(6) by the regulations.