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A net tainted currency gain is the sum of the tainted currency exchange gains less the sum of the tainted currency exchange losses. If this is positive there is a net gain. If not, the amount is ignored.
What is tainted currency exchange gain or loss?
A gain or loss from a currency exchange fluctuation will be tainted unless it falls within one of the following categories:
Last modified: 05 Dec 2006QC 18000
- the underlying transaction was for the purchase of goods from an unassociated person
- the underlying transaction was for the purchase or sale of depreciable plant or equipment that was used mainly to produce income that is not passive, tainted sales or tainted services
- the underlying transaction was a hedge for one of the preceding transactions
- the CFC was carrying on business as a currency trader and no other party to the transaction was an associate or an Australian resident.