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 775-15   Forex realisation gains are assessable  

Basic rule

775-15(1)  
Your assessable income for an income year includes a * forex realisation gain you make as a result of a * forex realisation event that happens during that year. Exceptions

775-15(2)  
However, your assessable income does not include a * forex realisation gain to the extent that it:


(a) is a gain of a private or domestic nature; and


(b) is not covered by an item of the table:


Forex realisation gains to which this subsection does not apply
Item You make the forex realisation gain as a result of this event ... happening to ... and the following condition is satisfied ...
1 forex realisation event 1 or 2 *foreign currency or a right, or a part of a right, to receive foreign currency a gain that would result from the occurrence of a *realisation event in relation to the foreign currency, or to the right, or the part of the right, would, apart from this Division, be taken into account under Part 3-1 or 3-3
2 forex realisation event 2 a right, or a part of a right, created or acquired in return for the occurrence of a *realisation event in relation to a *CGT asset you own, where subparagraph 775-45(1)(b)(iv) applies a gain or loss that would result from the occurrence of the realisation event in relation to the CGT asset would be taken into account for the purposes of Part 3-1 or 3-3
3 forex realisation event 4 an obligation, or a part of an obligation, you incurred in return for the acquisition of a *CGT asset a gain or loss that would result from the occurrence of a *realisation event in relation to the CGT asset would be taken into account for the purposes of Part 3-1 or 3-3

Note:

Parts 3-1 and 3-3 deal with capital gains and losses.

775-15(3)  
Section 775-70 provides for additional exceptions.

Note:

Section 775-70 is about the tax consequences of certain short-term forex realisation gains.

No double taxation

775-15(4)  
To the extent that a * forex realisation gain would be included in your assessable income under this section and another provision of this Act, the gain is only included in your assessable income under this section.

Note:

Under section 230-20 , foreign exchange gains from a Division 230 financial arrangement are dealt with under Division 230 and not under this Division.


 

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