Taxation Laws Amendment Act (No. 2) 1993 (Repealed) (18 of 1993)

PART 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 7   Amendments relating to foreign investment

Subdivision J   Foreign currency gains and losses

46   Step 1-calculation of foreign investment fund amount

Section 538 of the Principal Act is amended:

(a) by omitting from subsection (3) "Each" and substituting "Unless the taxpayer has made an election under subsection (4) in relation to the FIF, each";

(b) by adding at the end the following subsections:

"(4) The taxpayer may elect that each amount required to be calculated under any paragraph of subsection (2) is to be expressed in Australian currency at the exchange rate applicable:

(a) in the case of paragraph (2) (a)-on the day referred to in that paragraph; and

(b) in the case of paragraph (2) (b) or (e)-at the time of each distribution referred to in that paragraph; and

(c) in the case of paragraph (2) (c)-on the day when the taxpayer had the interests as mentioned in that paragraph; and

(d) in the case of paragraph (2) (d)-at the time when the consideration referred to in that paragraph is paid or given.

"(5) If the taxpayer makes the election:

(a) it applies in relation to all of the taxpayer's interests in the FIF in relation to the relevant period and all later relevant periods; and

(b) it is irrevocable.".