Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_1:p46
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 46/52)
Character Range: 115183–118043

under section 230‑50 (equity interests etc.).
 (2) For the purposes of this Division, a *foreign exchange retranslation election under subsection 230‑255(1) does not apply to a *financial arrangement if:
 (a) you are:
 (i) an individual; or
 (ii) an entity (other than an individual) that satisfies subsection 230‑455(2), (3) or (4) for the income year in which you start to have the arrangement; and
 (b) the arrangement is a *qualifying security; and
 (c) you have not made an election under subsection 230‑455(7).
 (3) A *foreign exchange retranslation election under subsection 230‑255(1) does not apply to a *financial arrangement if:
 (a) the election is made by the *head company of a *consolidated group or *MEC group; and
 (b) the election specifies that the election is not to apply to financial arrangements in relation to *life insurance business carried on by a member of the consolidated group or MEC group; and
 (c) the arrangement is one that relates to the life insurance business carried on by a member of the consolidated group or MEC group.
 (4) A *foreign exchange retranslation election does not apply to a *financial arrangement if the arrangement is associated with a business of a kind specified in regulations made for the purposes of this subsection.

230‑275  Balancing adjustment for election in relation to qualifying forex accounts
 (1) If a *hedging financial arrangement that you have does not (apart from this section) meet the requirements of sections 230‑355 to 230‑365, treat it as meeting those requirements if the Commissioner makes a determination under subsection (2) in relation to the arrangement.
 (2) The Commissioner may make the determination if the Commissioner considers that this is appropriate, having regard to:
 (a) the respects in which the arrangement does not meet those requirements; and
 (b) the extent to which it does not meet those requirements; and
 (c) the reasons why it does not meet those requirements; and
 (d) if the Commissioner is considering whether to impose conditions under subsection (3)—the likelihood that you will comply with those conditions; and
 (e) the objects of this Subdivision.
 (3) The balancing adjustment under this subsection is the balancing adjustment you would make under Subdivision 230‑G if you ceased to have the arrangement for its fair value at the time when the election started to apply to the arrangement (but only to the extent to which the balancing adjustment is reasonably attributable to a *currency exchange rate effect).

230‑280  Applying foreign exchange retranslation method to gains and losses

General election
 (1) You make a gain or loss from a *financial arrangement for an income year if:
 (a) a *foreign exchange retranslation election under subsection 230‑255(1) applies to the arrangement; and
 (b) any of the following subparagraphs apply: