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 230-305   Table of events and allocation rules  

230-305(1)  
For the purposes of paragraph 230-300(5)(a) , the following table lists events and their consequences:


Table of events and allocation rules
Item If this event occurs ... Your gain or loss is allocated ...
1 (a) you revoke the hedging designation; or
(b) you redesignate your * hedging financial arrangement; or
(c) you cease to meet the requirement of section 230-365 in relation to your hedging financial arrangement
over income years according to the basis determined under subsection 230-360(1).
2 (a) you cease to have the * hedged item or all of the hedged items; or
(b) you cease to expect that the hedged item or items will come into existence; or
(c) you cease to expect that you will have the hedged item or items
to the income year in which the event occurs.
2A (a) you cease to have one or more (but not all) of the * hedged items; or
(b) you cease to expect that one or more (but not all) of the hedged items will come into existence; or
(c) you cease to expect that you will have one or more (but not all) of the hedged items
(a) to the extent to which the gain or loss is reasonably attributable to those one or more hedged items - to the income year in which the event occurs; and
(b) to the extent to which the gain or loss is reasonably attributable to the remaining hedged item or items - over income years according to the basis determined under subsection 230-360(1).
3 a risk being hedged by your * hedging financial arrangement ceases to exist to the income year in which the risk ceases to exist.

230-305(2)  


For the purposes of item 2A of the table in subsection (1), determine the extent to which the gain or loss is reasonably attributable to a particular *hedged item having regard to the following:


(a) the fair value of the hedged item;


(b) the length of the period over which you have held the hedged item;


(c) commercially accepted valuation principles;


(d) any other relevant factors.


 

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