Document ID: chunk:federal_register_of_legislation:C2010C00611:clause:4_2:p1
Version: federal_register_of_legislation:C2010C00611
Segment Type: clause
Provision Reference: sch 4 cl 2 (pt 1/4)
Character Range: 45844–48654

2                                                                 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.

 (3) Section 775‑75 provides for additional exceptions.

Note: Section 775‑75 is about the tax consequences of certain short‑term forex realisation losses.

No double deductions

 (4) To the extent that this section and another provision of this Act would allow you a deduction for a *forex realisation loss, you can only deduct the loss under this section.

775‑35  Certain forex realisation losses are disregarded

 (1) A *forex realisation loss you make as a result of forex realisation event 1, 2 or 5 is disregarded to the extent that it is made in gaining or producing exempt income.

 (2) A *forex realisation loss you make as a result of forex realisation event 3, 4 or 6 is disregarded to the extent that:
 (a) it is made in gaining or producing exempt income or non‑assessable non‑exempt income; and
 (b) the obligation, or the part of the obligation, does not give rise to a deduction.

775‑40  Disposal of foreign currency or right to receive foreign currency—forex realisation event 1

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 foreign currency.

Note: For extended meaning of right to receive foreign currency, see section 775‑135.

Disposal

 (2) For the purposes 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.

Note: Under subsection 104‑10(2), a disposal requires a change of ownership.

Time of event

 (3) For the purposes 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.

Forex realisation gain

 (4) 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 to a *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.

Note: For currency exchange rate effect, see section 775‑105.

 (5) For the purposes of paragraph (4)(a), Part 3‑1