Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 230 - Taxation of financial arrangements  

Subdivision 230-E - Hedging financial arrangements method  

SECTION 230-375   Balancing adjustment if election ceases to apply  

230-375(1)  
This section applies if a *hedging financial arrangement election ceases to have effect under subsection 230-370(1) .

230-375(2)  
You are taken, for the purposes of this Division, to have:


(a) disposed of each *hedging financial arrangement to which the election applies for its fair value immediately before the election ceases to have effect; and


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

230-375(3)  
To avoid doubt, this Subdivision applies, for the purposes of working out the consequences of the disposal referred to in paragraph (2)(a), as if the *hedging financial arrangement were one to which the *hedging financial arrangement election applied at the time of the disposal.


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