Document ID: chunk:federal_register_of_legislation:C2025C00014:section:317:p9
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 317 (pt 9/12)
Character Range: 1841260–1844048

means:
 (a) any of the following:
 (i) loans (including deposits with a bank or other financial institution);
 (ii) debenture stock, bonds, debentures, certificates of entitlement, bills of exchange, promissory notes or other securities;
 (iii) shares in a company;
 (iv) an interest in a trust or partnership;
 (v) futures contracts;
 (vi) forward contracts;
 (vii) interest rate swap contracts;
 (viii) currency swap contracts;
 (ix) forward exchange rate contracts;
 (x) forward interest rate contracts;
 (xi) life assurance policies;
 (xii) a right or option in respect of such a loan, security, share, interest, contract or policy;
 (xiii) any similar financial instrument; or
 (b) an asset that was held by the company solely or principally for the purpose of deriving tainted rental income; or
 (c) an asset other than:
 (i) trading stock; or
 (ii) any other asset used solely in carrying on a business;
but does not include a commodity investment.
tainted commodity gain, in relation to a company, in relation to a statutory accounting period, means:
 (a) a gain realised by the company in the statutory accounting period from disposing of a tainted commodity investment; or
 (b) a capital gain that the company would have made in the statutory accounting period because CGT event J1 would have happened in relation to a tainted commodity investment, if the assumptions in paragraphs 383(a) to (c) applied.
Note: Basically, the effect of those assumptions is that the company concerned is taken to be a taxpayer and a resident and CGT event J1 may therefore be taken to have happened.
tainted commodity investment, in relation to a company, means:
 (a) either of the following contracts:
 (i) a forward contract in respect of a commodity;
 (ii) a futures contract in respect of a commodity; or
 (b) a right or option in respect of such a contract;
except where either of the following conditions is satisfied:
 (c) both of the following subparagraphs apply:
 (i) the company carries on:
 (A) a business of producing or processing the commodity; or
 (B) a business that involves the use of the commodity as a raw material in a production process;
 (ii) the contract, right or option relates to the carrying on of that business;
 (d) both of the following subparagraphs apply in relation to the contract:
 (i) the contract was entered into by the company for the sole purpose of eliminating or reducing the risk of adverse financial consequences that might result for the company, under another contract, from fluctuations in the price of the commodity;
 (ii) the company does not and will not derive tainted sales income from a transaction under that other contract.
tainted commodity loss, in relation to a company, in relation to a statutory accounting period, means:
 (a) a loss