Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 2/3)
Character Range: 7662132–7665106

Application of translation rules
 (1) Section 960‑50 applies to:
 (a) a transaction, event or thing that:
 (i) involves an amount in a *foreign currency; and
 (ii) occurs on or after the applicable commencement date (within the meaning of Division 775); or
 (b) a transaction, event or thing that:
 (i) involves an amount in a foreign currency; and
 (ii) occurs before the applicable commencement date (within the meaning of Division 775);
  to the extent to which the transaction, event or thing is relevant for the purposes of Division 775; or
 (c) an amount that Division 12 of Part 2‑5 in Schedule 1 to the Taxation Administration Act 1953 requires to be withheld from a payment, if the time when the amount is required to be withheld occurs on or after 1 July 2003; or
 (d) a payment that Part 5‑30 in Schedule 1 to the Taxation Administration Act 1953 requires to be reported, if the amount is paid on or after 1 July 2003.
Note: For applicable commencement date, see section 775‑155.

Exceptions
 (2) Despite subsection (1), section 960‑50 does not apply to a transaction, event or thing that involves:
 (a) an amount covered by subsection 775‑165(1); or
 (b) a right, or a part of a right, covered by subsection 775‑165(2); or
 (c) an obligation, or a part of an obligation, covered by subsection 775‑165(4).
Note: Subsections 775‑165(1), (2) and (4) are transitional provisions relating to forex realisation events.

Subdivision 960‑D—Functional currency

Guide to Subdivision 960‑D

960‑56  What this Subdivision is about
      The net income of any of the following entities (or parts of entities) that keeps its accounts solely or predominantly in a particular foreign currency can be worked out in that currency, with the net amount being translated into Australian currency:

                (a) an Australian resident who is required to prepare financial reports under section 292 of the Corporations Act 2001;
                (b) a permanent establishment;
                (c) an offshore banking unit;
                (d) a controlled foreign company (CFC);
                (e) a transferor trust.

Table of sections

Operative provisions
960‑59 Object of this Subdivision
960‑60 You may choose a functional currency
960‑61 Functional currency for calculating capital gains and losses on indirect Australian real property interests
960‑65 Backdated startup choice
960‑70 What is the applicable functional currency?
960‑75 What is a transferor trust?
960‑80 Translation rules
960‑85 Special rule about translation—events that happened before the current choice took effect
960‑90 Withdrawal of choice

Operative provisions

960‑59  Object of this Subdivision
  The object of this Subdivision is, for the purposes of reducing compliance costs and reflecting commercial practice, to allow certain entities (or parts of entities) whose accounts are kept solely or predominantly in a particular *foreign currency (the functional currency) to calculate their net