Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 10/18)
Character Range: 7498837–7501480

apply as if the disallowing provision had applied to make the deduction, or the part of the deduction, not allowable:
 (a) 832‑240(1)(a);
 (b) 832‑335(1)(a);
 (c) 832‑565(1)(a).

832‑790  Modifications relating to Division 230 gains and losses
 (1) This section applies to the following:
 (a) a gain that, apart from this Division, would be included in an entity's assessable income for an income year under Division 230;
 (b) a loss that, apart from this Division, would be allowable as a deduction to an entity for an income year under Division 230;
 (c) a gain or a loss that, apart from this Division, would be dealt with in accordance with subsection 230‑310(4) in relation to an income year.

Separation of currency effects for Division 230 gains and losses
 (2) For the purposes of this Division, split a gain into 2 separate gains, or a gain and a loss, as follows:
 (a) to the extent to which the gain represents a *currency exchange rate effect, treat it as a separate gain or loss;
 (b) to the extent that it does not represent that effect, treat it as a separate gain or loss from the *financial arrangement to which this Division applies.
 (3) For the purposes of this Division, split a loss into 2 separate losses, or a gain and a loss, as follows:
 (a) to the extent to which the loss represents a *currency exchange rate effect, treat it as a separate gain or loss;
 (b) to the extent that it does not represent that effect, treat it as a separate gain or loss from the *financial arrangement to which this Division applies.
 (4) For the purposes of this Division, assume an amount treated under paragraph (2)(b) or (3)(b) as a separate loss would, apart from this Division, be allowable as a deduction to the entity for the income year.

This Division applies to a non‑currency component that is a gain
 (5) If there is an amount treated under paragraph (2)(b) or (3)(b) as a separate gain from a *financial arrangement, the gain is treated as consisting of any actual payments made under the financial arrangement and taken into account in working out the amount of the gain or loss the entity made under the arrangement.
 (6) For the purposes of this Division, assume the gain is an amount that, subject to Division 6 (about effect of foreign residence), is included in the entity's assessable income.

Division 840—Withholding taxes

Table of Subdivisions
 Guide to Division 840
840‑M Managed investment trust withholding tax
840‑S Labour mobility program withholding tax

Guide to Division 840

840‑1  What this Division is about

      This Division provides the rules to determine if you are liable to pay income tax in