Document ID: chunk:federal_register_of_legislation:C2010C00611:clause:4_2:p3
Version: federal_register_of_legislation:C2010C00611
Segment Type: clause
Provision Reference: sch 4 cl 2 (pt 3/4)
Character Range: 50787–53328

of a *realisation event in relation to a *CGT asset you own, and none of subparagraphs (i), (ii) and (iii) applies; and
 (c) you did not cease to have the right, or the part of the right, because you disposed of the right or the part of the right (within the meaning of section 775‑40).

Note 1: Disposals are dealt with by section 775‑40 (forex realisation event 1).

Note 2: For extended meaning of right to receive foreign currency, see section 775‑135.

Time of event

 (2) The time of the event is when you cease to have the right or the part of the right.

Forex realisation gain

 (3) You make a forex realisation gain if:
 (a) the amount you receive in respect of the event happening exceeds the *forex cost base of the right or the part of the right (the forex cost base is worked out as at the tax recognition time); and
 (b) some or all of the excess is attributable to a *currency exchange rate effect.
The amount of the forex realisation gain is so much of the excess as is attributable to a currency exchange rate effect.

Note 1: For forex cost base, see section 775‑85.

Note 2: For tax recognition time, see subsection (7).

Note 3: For currency exchange rate effect, see section 775‑105.

Forex realisation loss

 (4) You make a forex realisation loss if:
 (a) the amount you receive in respect of the event happening falls short of the *forex cost base of the right or the part of the right (the forex cost base is worked out as at the tax recognition time); and
 (b) some or all of the shortfall is attributable to a *currency exchange rate effect.
The amount of the forex realisation loss is so much of the shortfall as is attributable to a currency exchange rate effect.

Note 1: For forex cost base, see section 775‑85.

Note 2: For tax recognition time, see subsection (7).

Note 3: For currency exchange rate effect, see section 775‑105.

 (5) You make a forex realisation loss if:
 (a) the event happens because an option to buy *foreign currency expires without having been exercised, or is cancelled, released or abandoned; and
 (b) you were capable of exercising the option immediately before the event happened.
The amount of the forex realisation loss is the amount you paid in return for the grant or acquisition of the option.

Non‑cash benefit

 (6) The amount you receive in respect of the event happening can include a *non‑cash benefit. Use the *market value of the benefit to work out the amount you receive.

Tax recognition time

 (7) For the purposes of this section, the tax recognition time is