Document ID: chunk:federal_register_of_legislation:C2010C00611:clause:4_2:p2
Version: federal_register_of_legislation:C2010C00611
Segment Type: clause
Provision Reference: sch 4 cl 2 (pt 2/4)
Character Range: 48416–50995

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 is modified so that section 118‑20 is disregarded in working out the *capital gain.

Note: Section 118‑20 deals with reducing capital gains if an amount is otherwise assessable.

Forex realisation loss

 (6) You make a forex realisation loss if:
 (a) you make a *capital loss from the event; and
 (b) some or all of the capital loss is attributable to a *currency exchange rate effect.
The amount of the forex realisation loss is so much of the capital loss as is attributable to a currency exchange rate effect.

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

No indexation of cost base

 (7) For the purposes of this section, disregard Division 114.

Note: Division 114 deals with indexation of the cost base.

Foreign currency hedging gains and losses

 (8) For the purposes of this section, disregard section 118‑55.

Note: Section 118‑55 deals with foreign currency hedging gains and losses.

Capital proceeds

 (9) For the purposes of this section, if the *capital proceeds from the event are more or less than the *market value of:
 (a) the *foreign currency; or
 (b) the right, or the part of the right;
the capital proceeds from the event are taken to be the market value. (The market value is worked out as at the time of the event.)

775‑45  Ceasing to have a right to receive foreign currency—forex realisation event 2

Forex realisation event 2

 (1) Forex realisation event 2 happens if:
 (a) you cease to have a right, or a part of a right, to receive *foreign currency; and
 (b) the right, or the part of the right, is one of the following:
 (i) a right, or a part of a right, to receive, or that represents, *ordinary income or *statutory income (other than statutory income that is assessable under this Division or Division 102);
 (ii) a right, or a part of a right, created or acquired in return for your ceasing to *hold a *depreciating asset;
 (iii) a right, or a part of a right, created or acquired in return for your paying, or agreeing to pay, an amount of Australian currency or foreign currency;
 (iv) a right, or a part of a right, created or acquired in return for the occurrence 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