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-B - Realisation of forex gains or losses  

SECTION 775-110  

775-110   Constructive receipts and payments  

For the purposes of this Subdivision, if an entity (the payer ) did not actually pay an amount to another entity (the recipient ), but the amount was applied or dealt with in any way on the recipient's behalf or as the recipient directs (including by discharging all or a part of an obligation owed by the recipient), then:

(a) the payer is taken to have paid the amount as soon as it is applied or dealt with; and

(b) the recipient is taken to have received the amount as soon as it is applied or dealt with.

Note:

The set-off of an obligation to pay an amount against a right to receive an amount is an example of how this section would operate.