Private ruling: Forex realisation event
Date of advice: 29 September 2025
Published: 17 November 2025
Ruling period: DD MM YYYY to DD MM YYYY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Will the first element of the cost base and reduced cost base of the Claim assigned by the Company to the Creditors Trust on the Assignment Date be $xxx being the market value of the Claim assigned under the DOCA pursuant to the market value substitution rule in section 112-20 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. | Q2: Is the Claim 'taxable Australian property' as defined in section 855-15 of the ITAA 1997? | A2: No. | Q3: Will the Sale constitute a CGT event A1 on the Sale Date? | A3: Yes. | Q4: Will the Sale on the Sale Date result in a forex realisation event 1 occurring to the Creditors Trust pursuant to subsection 775-40(1) of the ITAA 1997? | A4: Yes. | Q5: Will the Sale on the Sale Date result in the Creditors Trust making a forex realisation gain pursuant to subsection 775-40(4) of the ITAA 1997 or a forex realisation loss pursuant to subsection 775-40(6) of the ITAA 1997? | A5: No.

Relevant facts and circumstances: The Company is an Australian company incorporated on DD MM YYYY and is a tax resident of Australia. The Company is a trading desk dealing primarily in xx and xxx, earning a profit through fees and spreads. The Company held xxx deposits with various entities including Company A and Company B, Company C, Company D, Company E (collectively, the Group). The Company, as customer of the Group, held an account for the purpose of transacting in xxx assets on the xxx platform. The account was governed by xxx Terms of Service dated DD MM YYYY (Terms of Service). As set forth in the Terms of Service, title to all xxx assets deposited or held in the account at all times remained with the Company, and no xxx assets held in the account were the property of the Group. Among other things, clause X.X.X of the Terms of Service provides, in relevant part: All xxx Assets are held in your Account on the following basis: • Title to your xxx Assets shall at all times remain with you and shall not transfer to the Group. As the owner of the xxx Assets in your Account, you shall bear all risk of loss of such xxx Assets, The Group shall have no liability for fluctuations in the xxx value of xxx Assets held in your Account. • None of the xxx Assets in your account are the property of, or shall or may be loaned to, the Group; the Group does not represent or treat xxx Assets in User's Accounts as belonging to the Group. • You control the xxx Assets held in your Account. At any time, subject to outages, downtime, and the other applicable policies (including the Terms), you may withdraw your xxx Administration On DD MM YYYY, the Group was placed into bankruptcy in Country A and Company F was placed into voluntary administration. This resulted in the Company facing financial difficulties. On DD MM YYYY, Person A and Person B of Company G were appointed as joint administrators of the Company. On DD MM YYYY, Person C and Person D were appointed as joint administrators of the Company replacing Person A and Person B. On DD MM YYYY, the creditors of the Company resolved for the company to enter into a deed of company arrangement. On DD MM YYYY, the Company entered into a deed of company arrangement (DOCA). On DD MM YYYY (Assignment Date): • Person C (Trustee) consented to act as trustee and entered into the trust deed (Trust Deed) establishing the Company's Creditors Trust (Creditors Trust) and • The DOCA was effectuated following the distribution of funds to specified creditors under the DOCA and the distribution of remaining funds to the Creditors Trust. The DOCA was terminated on DD MM YYYY. Having regard to the terms of the DOCA including clause XX, the Trustee of the Creditors Trust acquired the Claim on the Assignment Date. The Claim In MM YYYY, Person C as deed administrator lodged a Modified Form 410 (Claim Form) in the Country A Bankruptcy Court in the District of xxx on behalf of the Company against the Group which outlined a claim held by the Group with an estimated value of xxx (the Claim). The value of the Claim was subsequently amended to xxx by lodgement of an addendum on DD MM YYYY. Relevantly, the addendum states the Claim is in respect of: XXX The Claim was considered an asset of the Group and pursuant to the Terms of DOCA and the Trust Deed, was assigned to the Creditors Trust on the Assignment Date. The assets of the Company transferred to the Creditors Trust on the Assignment Date consisted of: • Cash. • GST Credits. • The Claim. On DD MM YYYY per the RBA historical data, the currency exchange rate was xxx. On or around DD MM YYYY, after having performed various reconciliations, the Group filed a motion in the Country A Bankruptcy Court amending the Claim to xxx. Between the collapse of the Group on DD MM YYYY and the date the Claim was ultimately disposed of on DD MM YYYY, there was significant uncertainty as to the recoverability of amounts claimed against the Group and hence the valuation of claims are due to the following factors: • The collapse of the Group resulted in hundreds of thousands of customer claims following the blocking of withdrawals on the date the Group collapsed; • At the time of the bankruptcy filing there was an estimated shortfall of assets of circa xxx, although it was difficult to assess this shortfall with any precision as a consequence of a need to perform investigations into the Group's dealings, including with related entities. It was also necessary for transactions to be forensically traced to determine whether pre-petition withdrawals immediately preceding the filing had been completed; • The creditor base for other creditors including Country A regulators such as the Commodity Futures Trading Commission and the Country A Inland Revenue Service led to significant uncertainty surrounding the liabilities including fines and taxes, and their priority as against other creditors; • The volatility in the industry markets also led to uncertainty as to the pool of available assets, but it was notable that the price of xxx had moved from Country A at the time of the bankruptcy filing to xxx in MM YYYY. This made it indeterminant what the available asset pool would be, and what the creditor claims were (including priority rights); and • The opacity of key financial information and lack of any public disclosure by the Group made the potential market pricing of the claims entirely speculative. Claims against the Company As at the Assignment Date, the approximate value of the claims against the Company which subsequently converted into claims against the Creditors Trust pursuant to the terms of the DOCA and Trust deed are as follows (Creditor's Claim): Redacted. Company I and Company M Ltd are foreign residents for Australian tax purposes. DOCA Clause X.X of the DOCA states: Release of Admitted Claims: Each Creditor will, after distribution of the Deed Fund and becoming a beneficiary of the Creditor Trust, properly execute and deliver to the Company such forms of release of its Admitted Claim as the Deed Administrator of the Company require. Clause X.X of the DOCA states: Claims extinguished Without limiting Clause X.X, if the Deed Administrator has distributed the Deed Fund in accordance with Clause XX and the Creditor Trust has been settled, all Claims will be extinguished. Clause X.X of the DOCA states: Creditor Claims convert to Trust claims Upon effectuation of this Deed under Clause XX.X: (a) The Claims of all Creditors will be fully released and discharged; and (b) Each Creditor who had a Claim will be entitled to make a claim against the Trust Fund, which is equal in amount to their released Claim except for: (i) Employee Creditors and Minor Creditors to the extent that their claims have been adjudicated and paid under Clause X and XX respectively, (ii) Company K to the extent that its Claim has been paid under Clauses XX and X, (iii) Company I to the extent its Claim has been paid under clauses XX and X. Clause XX.XX of the DOCA states: Distribution The Deed Administrator will distribute all assets coming under his control in the following order: (a) Firstly, in relation to the Deed Contribution, in accordance with the priorities set out at Clause XX; (b) Next, to the Deed Administrator in respect to their Remuneration and Expenses at a time of the Deed Administrator's sole discretion and which, for the avoidance of doubt, may include withholding the making of such payment, until a later time by making a payment under Clause XX.X(x). (c) Lastly, to the Creditors Trust within 14 days of the Final Deed Contribution. Clause XX.X of the DOCA states: Assignment of the Claims Prior to effectuation of this deed under Clause XX.X: (a) The Deed Administrator is to do all things and sign all documents necessary to assign the Claims and any distributions the Deed Company receives or is entitled to receive from any Entity to the Creditors Trust. (b) The Deed Administrators may take any step deemed necessary for the purpose of the Company recovering or collecting any funds from an Entity of the Group on the Company's behalf. Clause XX.X of the DOCA states: Company to transfer any receipts from Claims to Creditor Trust If the Company received any funds in relation to a Claim, the Company shall immediately notify the Trustee of the Creditor Trust and transfer any funds received to a bank account nominated by the Trustee of the Creditor Trust. For the avoidance of doubt, any funds the Company receives from the Claim are held on trust for the Trustee of the Creditor Trust. Trust Deed Clause X.X of the Trust Deed states: Assignment of Claims To the extent that the Deed Administrator has not, or has not been able to, transfer or assign the Claims to this Trust, the Trustee must take all steps necessary to do so in order to collect and/or recover any funds from the Entities on the Company's behalf. Clause X.X of the Trust Deed states: Company to transfer any monies received from Claims to this Trust If the company received any funds in relation to the Claim, the Company shall, and the Director must procure that the Company, immediately notify the Trustee and transfer any funds receives to a bank account nominated by the Trustee. For the avoidance of doubt, any funds that the Company receives from the Claim are held on trust for the Trustee of this Trust. Clause X.X of the Trust Deed states: Distribution The Trustee will distribute all assets coming under their control in the following order: (a) Firstly, to the Trustee in respect to Trustee's Cost and Expenses; (b) Next, in payment of any Admitted Employee Claim; (c) Next, in distributing the balance of the Trust Fund on a pari passu basis to the Admitted Claims; (d) Next, on a pari passu basis in respect to interest that would otherwise accrue to the Admitted Claims based upon section 563B of the Corporations Act ; (e) Next to the Company. Clause X.X of the Trust Deed states: Timing of Distribution The Trustee is to distribute all assets coming under this control as soon as reasonably practicable, but at their sole discretion. Clause X.X of the Trust Deed states: Surplus in the Trust Fund In the event that there is a surplus or balance in the Trust Fund after the Trust fund has been distributed in accordance with clause X.X and the Trustee has not made and does not apprehend that they will make a claim on the Indemnity, such surplus or balance shall be paid by the Trustee to the Company. Clause X.X of the Trust Deed states: Discharge of claims All Admitted Claimants having a Claim must accept their Admitted Claims under this Deed (if any) in full satisfaction and complete discharge of all claims which they have or claim to have against the Trustee or the Trust Fund and each of them will, if called upon to do so, execute and deliver to the Trustee such forms of release of any such claim as the Trustee requires. Clause X.X of the Trust Deed states: Claim extinguished On the payment of the final distribution to the Admitted Claimants from the Trust Fund, all Claims against the Trust Fund are extinguished, and each Admitted Claimant will, if called upon to do so, execute and deliver to the Trustee such forms of release of any Claim as the Trustee may require. Sale of Claim On DD MM YYYY (Sale Date), the Claim was sold to Company N for cash consideration xxx in accordance with the Claim Sale and Purchased Agreement (CDS). Company N is a third party purchaser of Claim (the Sale). In determining the capital gain for the sale of the Claim, the Trustee of the Creditors' Trust has applied the appropriate RBA historical data and in respect of DD MM YYYY applied an AUD/xx exchange rate of xxx.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 104-165 | Income Tax Assessment Act 1997 section 108-5 | Income Tax Assessment Act 1997 Division 109 | Income Tax Assessment Act 1997 section 110-25 | Income Tax Assessment Act 1997 section 112-20 | Income Tax Assessment Act 1997 Division 114 | Income Tax Assessment Act 1997 section 118-20 | Income Tax Assessment Act 1997 section 118-55 | Income Tax Assessment Act 1997 section 775-40 | Income Tax Assessment Act 1997 section 775-105 | Income Tax Assessment Act 1997 section 855-15 | Income Tax Assessment Act 1997 section 855-20 | Income Tax Assessment Act 1997 section 855-25 | Income Tax Assessment Act 1997 section 855-30 | Income Tax Assessment Act 1997 section 995-1 | Income Tax Assessment Act 1997 Subdivision 960-D | Income Tax Assessment Act 1997 section 960-50

Reasons for decision: Summary: Yes, the first element of the cost base and reduced cost base of the Claim assigned by the Company to the Creditors Trust on the Assignment Date will be the market value of the Claim assigned under the DOCA pursuant to the market value substitution rule because the Creditors Trust receive the Claim in exchange for nothing as the Company is in administration. The market value of the Claim as determined by the Trustee is xxx and reflects the most appropriate reflection of the market value. | Detailed Reasoning - Detailed Reasoning: A CGT Asset is defined under subsection 108-5(1) as any kind of property or a legal or equitable right that is not property The Claim held by the Company against the Group will be a 'legal or equitable right' as a chose in action brought in Country A Bankruptcy Court in the District of xxx in relation to the loss and any consequential loss. Therefore, the Claim will be a CGT asset The Market Value Substitution Rule in section 112-20 provides that if you receive nothing in exchange for a CGT Asset, you are taken to have received the market value of the asset at the time of the CGT event. Section 112-20 states: (1) The first element of your cost base and reduced cost base of a CGT asset you acquire from another entity is its market value (at the time of acquisition) if: (a) you did not incur expenditure to acquire it, except where your acquisition of the asset resulted from: (i) CGT event D1 happening; or (ii) another entity doing something that did not constitute a CGT event happening; or (b) some or all of the expenditure you incurred to acquire it cannot be valued, or (c) you did not deal at arm's length with the other entity in connection with the acquisition. Under section 110-25. There are five elements to cost base. The first element of cost base is the total of: • the money you paid or required to pay, in respect of acquiring it; and • the market value of any other property you gave, or are required to give, in respect of acquiring it (worked out as at the time of the acquisition). Under section 995-1, you acquire a CGT asset in the circumstances and at the time worked out under Division 109 and an item of intellectual property: an entity does not acquire an item of intellectual property merely because of a licence relation to a patent, design or copyright surrendered to the entity. Division 109 list out specific rules for the circumstances in which, and the time at which, you acquire a CGT asset as a result of a CGT event happening. Subsection 109-5(1) provides that you acquire a CGT asset when you become its owner. In this case, the time when you acquire the asset is when you acquire the asset is when you become its owner. The table set out in subsection 109-5(2) sets out the time at which you acquire a CGT asset as a result of a CGT event happening. A CGT event A1 occurs when an entity disposes of a CGT asset to your (except where you compulsorily acquire it) and it happens when the disposal contract is entered into, or if none, when the entity stops being the asset's owner. The Trustee of the Creditors Trust did not incur any expenditure to acquire the Claim, and the acquisition of the Claim did not result from a CGT event D1 happening or another entity doing something that did not constitute a CGT event happening. Hence, the first element of the cost base and reduced cost base of the Claim assigned by the Company to the Creditors Trust on the Assignment Date will be the market value of the Claim assigned under the DOCA pursuant to the market value substitution rule in section 112-20. The term 'market value' is not defined in the Tax Acts but rather is modified under Subdivision 960-S such that 'market value' adopts its ordinary meaning. Based on the information available to the Trustee, the Trustee applied the most appropriate reflection of the market value of the Claim to be xxx being the face value of the Claim of xxx divided by the exchange rate of xxx on DD MM YYYY per the RBA historical data. Therefore, the first element of the cost base and reduced cost base of the Claim in the hands of the Trustee will be xxx. | Detailed Reasoning - Question 2: Is the Claim 'taxable Australian property' as defined in section 855-15 of the ITAA 1997? | Summary: The Claim is not taxable Australian property as defined in section 855-15. | Detailed Reasoning - Detailed Reasoning: There are five categories of CGT assets that are taxable Australian Property under section 855-15. Section 855-20 states a CGT asset is taxable Australian real property if it is: (a) a real property situated in Australia (including a lease of land, if the land is situated in Australia); or (b) a mining quarrying or prospecting right (to the extent that the right is not real property). If the minerals, petroleum or quarry materials are situated in Australia. Section 855-25 states that a membership interest held by an entity (the holding entity) in another entity (the test entity) at a time is an indirect Australian real property interest at that time if: (a) The interest passes the non-portfolio interest test (see section 960-195): (i) at that time; or (ii) throughout a 12 month period that began no earlier than 24 months before that time and ended no later than that time; and (b) the interest passes the principal asset test in section 855-30 at that time. Subsection 104-165(3) provides exception for individuals by choosing to disregard making a gain or loss. If you do so, choose each of those assets is taken to be taxable Australian property until the earlier of: (a) a CGT event happening in relation to the asset, if the CGT event involves you ceasing to own the asset; (b) you again becoming an Australian resident. The Claim is a chose in action held by the Creditors Trust against the Group pending bankruptcy proceedings. The Claim will not be taxable Australian property as defined in section 855-15. | Detailed Reasoning - Question 3: Will the Sale constitute a CGT event A1 on the Sale Date? | Summary: Yes, a CGT event A1 will occur on the Sale Date as a result of the Sale by the Creditors Trust to Company N. | Detailed Reasoning - Detailed Reasoning: A CGT event A1 occurs when an entity disposes of a CGT asset. Under section 104-10: (1) CGT event A1 happens if you dispose of a CGT asset. (2) You dispose of a CGT asset if ai change of ownership occurs from you to another entity, whether because of some act or event of by operation of law. However, a change of ownership does not occur if you stop being the legal owner of the asset but continue to be its beneficial owner. (3) The time of the event is: (a) when you enter into the contract for the disposal; or (b) if there is no contract - when the change of ownership occurs. The Trustee entered into the Claim Sale and Purchase Agreement on the Sale Date to dispose of the Claim to Company N. As the Trustee has disposed of the Claim to Company N, subsection 104-10(1) and (2) are satisfied and a CGT event A1 happens. The time the CGT event A1 occurs was at the Sale Date on DD MM YYYY when the Sale and Purchase Agreement was entered into as per subsection 104-10(3). Therefore, a CGT event A1 on the sale date occurred. | Detailed Reasoning - Question 4: Will the Sale on the Sale Date result in a forex realisation event 1 occurring to the Creditors Trust pursuant to subsection 775-40(1) of the ITAA 1997? | Summary: Yes, a forex realisation event 1 will occur on the Sale Date for the Creditors Trust as there has been a disposal of a right to receive foreign currency being the Claim denominated to Company N from the Creditors Trust | Detailed Reasoning - Detailed Reasoning: Under section 775-40 a disposal of foreign currency or right to receive foreign currency is a forex realisation event 1. | Detailed Reasoning - Forex realisation event 1: (1) Forex realisation event 1 is CGT event A1 that happens if you dispose of: (a) foreign currency; or (b) a right, or a part of a right, to receive a foreign currency | Detailed Reasoning - Disposal: (2) For the purpose of this section, use subsection 104-10(2) to work out whether you have disposed of: (a) foreign currency; or (b) a right, or a part of a right, to receive foreign currency. | Detailed Reasoning - Time of event: (3) For the purpose of this section, subsection 104-10(3) is modified so that the time of the event is when: (a) the foreign currency is disposed of; or (b) the right, or the part of the right, is disposed of. Under section 104-10 a CGT event A1 happens when an entity has a CGT asset that they dispose of. Foreign currency under section 995-1 - foreign currency means a currency other than: (a) Australian currency or (b) digital currency or (c) anything prescribed by the regulations for the purposes of this paragraph. The Claim is a foreign currency as defined under section 995-1 because the Claim is in xxx currency. The Claim held by the Creditors Trust immediately before the Sale Date, was a chose in action against the Group denominated in the Country A Dollars being xxx. The Creditors Trust disposed of the Claim to Company N. From this disposal, the change of ownership occurred at the Sale Date therefore a CGT event A1 has occurred. A forex realisation event 1 will occur on the Sale Date for the Creditors Trust as there has been a disposal of a right to receive foreign currency being the Claim denominated in xxx to Company N from the Creditors Trust. | Detailed Reasoning - Question 5: Will the Sale on the Sale Date result in the Creditors Trust making a forex realisation gain pursuant to subsection 775-40(4) of the ITAA 1997 or a forex realisation loss pursuant to subsection 775-40(6) of the ITAA 1997? | Summary: No, the Sale on the Sale Date will not result in a forex realisation gain pursuant to subsection 775-40(4) or a forex realisation loss pursuant to subsection 775-40(6). | Detailed Reasoning - Forex Realisation Gain: Subsection 775-40(4) says you make a forex realisation gain if: (a) you make a capital gain from the event and (b) some or all of the capital gain is attributable toa currency exchange rate effect. The amount of the forex realisation gain is so much of the capital gain as is attributable to a currency exchange rate effect. Subsection 775-40(5) for the purposes of paragraph (4)(a), Part 3-1 is modified so that section 118-20 is disregarded in working out the capital gain. | Detailed Reasoning - Forex Realisation Loss: Subsection 775-40(6) says you make a forex realisation loss if: (a) you make a capital loss from the event; and (b) some or all of the capital loss is attributable to a currency exchange rate effect. The amount of the forex realisation loss is much of the capital loss as is attributable to a currency exchange rate effect. Subsection 775-40(7) says for the purpose of this section disregard Division 114 (deals with indexation of the cost base). Subsection 775-40(8) says for the purpose of this section disregard section 118-55 (deals with foreign currency hedging gains and losses). Subsection 775-40(9) says for the purpose of this section, if the capital proceeds from the event are more or less than the market value of: (a) the foreign currency; or (b) the right, or a part of the right; the capital proceeds from the event are taken to be the market value. (The market value is worked out as at the time of the event). Subsection 775-105(1) define a currency exchange effect as: (a) any currency exchange rate fluctuations; or (b) a difference between: (i) an expressly or implicitly agreed currency exchange rate for a future date or time, and (ii) the applicable currency exchange rate at that date or time. Subsection 775-105(2) states that to work out whether there is a currency exchange rate effect and (if so), the extent of that effect use whichever of the following translation is applicable to you: (a) the translation rules in section 960-50 (the standard rules); (b) the translation rules in section 960-80 (the functional currency rules) Section 960-50 has the standard rules for translation of amounts into Australia currency. The purpose of section 960-50 is an amount in a foreign currency is to be translated into Australian currency. An example of an amount is defined in subsection 960-50(2). | Detailed Reasoning - Definitions: Capital gain from each CGT event is worked out in the way described in that event as defined under section 995-1. Currency exchange rate effect has the meaning given by Division 116 as directed by section 995-1. Section 955-1 states that for each CGT event a Capital Loss is worked out in the way described in that event. Capital proceeds have the meaning given by Division 116 as directed by section 995-1. Market Value has the meaning affected by subdivision 960-S as directed in section 995-1. TD 2006/32 [Income tax: where there is a disposal of foreign currency or a right to receive foreign currency and forex realisation event 1 happens, is the amount attributable to a currency exchange rate effect determined by subtracting the non-forex component of the capital gain (or loss) from the overall capital gain (or loss)?] outlines the Commissioner's approach to the application of the foreign currency realisation events calculations. In order for the Creditors Trust to make a forex realisation gain pursuant to subsection 775-40(4) there must be a capital gain arising from the Sale on the Sale Date (see below) and some or all of the capital gain must be attributable to currency exchange rate fluctuations (as there was no agreed currency exchange rate in the CSA and the purchase price and other costs were solely denominated in xxx). As outlined in this ruling application, there will be a capital gain for the Creditors Trust on the Sale Date in relation to the Sale. The Trustee of the Creditors Trust has not chosen to adopt a functional currency. As such the translation rules in section 960-50 apply to determine whether there is a currency exchange rate effect and hence, whether such effect is attributable to some or all of the capital gain. Adopting the Commissioner's approach in TD 2006/32: • as the capital gain attributable to the currency exchange rate fluctuation is negative, there is no forex realisation gain as no amount of the overall capital gain is attributable to the capital gain recognised by the Creditors Trust on the Sale Date as required by subsection 775-10(4). • the Creditors Trust will not realise a forex realisation loss under subsection 775-40(6) because the Creditors Trust will not make an overall capital loss on the Sale Date in relation to the Sale and hence, paragraph 775-40(6)(a) will not be satisfied. As only some of the requirements in paragraphs 775-40(6)(a) and (b) are satisfied, the Creditors Trust will not recognise a forex realisation loss. Therefore, on the facts in this case, the Sale on the Sale Date will not result in a forex realisation gain pursuant to subsection 775-40(4) or a forex realisation loss pursuant to subsection 775-40(6).

Other relevant facts: The Creditors Trust does not carry on a business and is established solely to administer the Creditor's Claims. | The Trustee has not made a choice under Subdivision 960-D to choose a functional currency. | Does IVA apply to this private ruling?: Part IVA of the Income Tax Assessment Act 1936 contains anti-avoidance rules that can apply in certain circumstances where you or another taxpayer obtains a tax benefit, imputation benefit or diverted profits tax benefit in connection with an arrangement. | If Part IVA applies, the tax benefit or imputation benefit can be cancelled (for example, by disallowing a deduction that was otherwise allowable) or you or another taxpayer could be liable to the diverted profits tax. | We have not fully considered the application of Part IVA to the arrangement you asked us to rule on, or to an associated or wider arrangement of which that arrangement is part. | If you want us to rule on whether Part IVA applies, we will need to obtain and consider all the facts about the arrangement which are relevant to determining whether Part IVA may apply. | For more information on Part IVA, go to our website ato.gov.au and enter 'part iva general' in the search box on the top right of the page, then select 'Part IVA: the general anti-avoidancerule for income tax'. | Reasons for decision: All legislative references are to the Income Tax Assessment Act 1997 unless otherwise specified. | Question 1: Will the first element of the cost base and reduced cost base of the Claim assigned by the Company to the Creditors Trust on the Assignment Date be $xxx being the market value of the Claim assigned under the DOCA pursuant to the market value substitution rule in section 112-20 of the ITAA 1997?