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-D - Qualifying forex accounts that pass the limited balance test  

Operative provisions

SECTION 775-250   Tax consequences of passing the limited balance test  

775-250(1)    
A *forex realisation gain or a *forex realisation loss you make as a result of forex realisation event 2 or 4 is disregarded if the event happens in relation to a *qualifying forex account that:

(a) you hold at the time of the event; and

(b) passes the limited balance test at the time of the event.

775-250(2)    
If CGT event C1 or C2 happens in relation to a *qualifying forex account that:

(a) you hold at the time of the event; and

(b) passes the limited balance test at the time of the event;

disregard so much of any *capital gain or *capital loss you make as a result of the event as is attributable to a *currency exchange rate effect.

Note:

For currency exchange rate effect , see section 775-105 .