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 775-100   Net costs of assuming an obligation to receive foreign currency  

775-100(1)    
For the purposes of this Division, the net costs of assuming an obligation, or a part of an obligation, to receive *foreign currency are the total of:

(a) the money you:

(i) are required to pay; or

(ii) would be required to pay in the event of the exercise of an option;

in respect of the fulfilment of the obligation or the part of the obligation; and

(b) the *market value of any *non-cash benefit you:

(i) are required to provide; or

(ii) would be required to provide in the event of the exercise of an option;

in respect of the fulfilment of the obligation or the part of the obligation;

reduced by the amount worked out under subsection (2).

775-100(2)    
The amount worked out under this subsection is the total of:

(a) the money you:

(i) received; or

(ii) are entitled to receive;

because you incurred the obligation or the part of the obligation; and

(b) the *market value of any *non-cash benefit you:

(i) received or obtained; or

(ii) are entitled to receive or obtain;

because you incurred the obligation or the part of the obligation;

reduced by any amounts that are included in assessable income under a provision of this Act other than this Division.

775-100(3)    
To avoid doubt, paragraphs (2)(a) and (b) do not apply to money or a *non-cash benefit that you:

(a) received or obtained; or

(b) are entitled to receive or obtain;

because of the fulfilment of the obligation or the part of the obligation.