Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p38
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 38/43)
Character Range: 4040928–4043546

or loss you make from a *Division 230 financial arrangement.
 (2) The provisions are as follows:
 (a) section 52A of the Income Tax Assessment Act 1936;
 (c) Division 16J of Part III of the Income Tax Assessment Act 1936;
 (d) Division 16K of Part III of the Income Tax Assessment Act 1936;
 (e) item 3 of the table in subsection 245‑65(1) of this Act;
 (f) section 775‑40 of this Act.
 (3) In determining the amount of the gain or loss, treat the relevant amount as having been adjusted by the provision mentioned in subsection (2).
 (4) However, if the circumstances that give rise to the adjustment result in section 230‑510 having the effect of altering the amount of the gain or loss, do not treat the relevant amount as having been adjusted under subsection (3) to the extent of that alteration.

230‑520  Disregard gains or losses covered by value shifting regime
 (1) Disregard a gain or loss under this Division from a *financial arrangement to the extent that it is attributable to:
 (a) a shifting of value that has consequences under Division 723; or
 (b) a *direct value shift that has consequences under Division 725; or
 (c) an *indirect value shift that has consequences under Division 727; or
 (d) a shifting of value that has consequences analogous to those under Division 725 or 727 under a repealed provision of this Act or of the Income Tax Assessment Act 1936.
 (2) Determine whether a shifting of value has the consequences mentioned in paragraph (1)(a) on the assumption that a *realisation event in respect of all or part of the *financial arrangement happens in the income year for the gain or loss.

230‑522  Adjusting a gain or loss that gives rise to a hybrid mismatch
 (1) This section applies if a provision of Division 832 would, apart from section 832‑785, apply to make not allowable an amount (the relevant amount) that is all or a part of the deduction for:
 (a) a loss from a *Division 230 financial arrangement; or
 (b) an amount treated under section 832‑790 as a separate loss from a Division 230 financial arrangement.
 (2) The following have effect:
 (a) if (disregarding section 832‑790) you made a loss from the *financial arrangement, and the relevant amount does not exceed the amount of the loss—the amount of the loss you made is reduced by the relevant amount;
 (b) if (disregarding section 832‑790) you made a loss from the financial arrangement, and the relevant amount exceeds the amount of the loss:
 (i) you do not make a loss from the financial arrangement; and
 (ii) instead, you make a gain from the financial arrangement equal to the amount of the excess;
 (c)