Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 775 - Foreign currency gains and losses  

Subdivision 775-F - Retranslation under foreign exchange retranslation election under Subdivision 230-D  

Guide to Subdivision 775-F

SECTION 775-315   Balancing adjustment when election ceases to apply to arrangement  

775-315(1)    
This section applies if:

(a) you make a *foreign exchange retranslation election; and

(b) the election ceases to have effect or ceases to apply to an *arrangement.

775-315(2)    
You are taken, for the purposes of this Division, to have:

(a) disposed of the *arrangement for its fair value immediately before the election ceases to have effect or ceases to apply to the arrangement; and

(b) reacquired the arrangement at its fair value immediately after the election ceases to have effect or ceases to apply to the arrangement.

Note:

Paragraph (a) means that there would be a forex realisation event 9 in relation to the arrangement.