Document ID: chunk:federal_register_of_legislation:C2025C00029:section:10:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 10 (pt 2/3)
Character Range: 6872143–6874689

the part of the right (the forex entitlement 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 gain is so much of the shortfall as is attributable to a currency exchange rate effect.
Note 1: For forex entitlement base, see section 775‑90.
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 pay in respect of the event happening exceeds the *forex entitlement base of the right or the part of the right (the forex entitlement 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 loss is so much of the excess as is attributable to a currency exchange rate effect.
Note 1: For forex entitlement base, see section 775‑90.
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 sell *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 pay 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 pay.

Tax recognition time
 (7) For the purposes of this section, the tax recognition time is the time when you pay an amount in respect of the event happening.

Obligation to pay Australian currency
 (8) To avoid doubt, for the purposes of this section, an obligation to pay Australian currency includes an obligation to pay Australian currency, where the obligation is subject to a contingency.

775‑65  Only one forex realisation event to be counted

Option to buy foreign currency
 (1) The following table applies to an option to buy a particular *foreign currency if the exercise price is payable in another foreign currency:

Option to buy foreign currency
Item                            If you are...                                       and both of these events happen when the option is exercised...  this is the result...