Income Tax Assessment Act 1997
(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.
Item 11A is added to the table in subsection 960-50(6) by the regulations.