Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p55
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 55/55)
Character Range: 3934532–3936990

(3), the gain or loss referred to in paragraph (a) is allocated over income years according to the table.
 (7) Subsection (8) applies if the *hedging financial arrangement:
 (a) is a *financial arrangement under section 230‑50 (equity interests etc.); and
 (b) is a *foreign currency hedge; and
 (c) is one that you issue.
 (8) Split a gain or loss you make from the arrangement as follows:
 (a) to the extent to which the gain or loss represents a *currency exchange rate effect, treat it as a separate gain or loss to which subsections (1) and (2) apply;
 (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 does not apply.
 (9) Subsections (10) and (11) apply if:
 (a) a *head company of a *consolidated group or *MEC group has a *hedging financial arrangement; and
 (b) a *hedging financial arrangement election applies to the arrangement; and
 (c) a subsidiary member of the group ceases to be a member of the group at a particular time (the leaving time); and
 (d) immediately after the leaving time:
 (i) the head company no longer has the arrangement because the subsidiary member ceased to be a member of the group; and
 (ii) the head company no longer has the *hedged item (or all of the hedged items) because the subsidiary member ceased to be a member of the group.
 (10) The gain or loss the group makes from the arrangement for the income year in which the leaving time occurs is taken to be the gain or loss that would be allocated to the group in accordance with this section (disregarding subsection (5)) if:
 (a) the circumstances that existed in relation to the arrangement (including its value) immediately before the leaving time had continued to exist until the end of the income year; and
 (b) any circumstances that arise in relation to the *financial arrangement after the leaving time were disregarded.
 (11) For the purposes of applying paragraph (5)(a) to the *head company of the group at the leaving time, disregard item 2 of the table in subsection 230‑305(1).

230‑305  Table of events and allocation rules
 (1) For the purposes of paragraph 230‑300(5)(a), the following table lists events and their consequences:

Table of events and allocation rules
Item                                  If this event occurs …                                                                                      Your gain or loss is allocated …