Document ID: chunk:federal_register_of_legislation:C2010C00611:clause:4_6:p2
Version: federal_register_of_legislation:C2010C00611
Segment Type: clause
Provision Reference: sch 4 cl 6 (pt 2/4)
Character Range: 57647–60231

assuming obligations under the option.

Forex realisation loss

 (5) You make a forex realisation loss if:
 (a) the amount you receive in respect of the event happening falls short of the net costs of assuming the obligation or the part of the obligation (the net costs are 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 loss is so much of the shortfall as is attributable to a currency exchange rate effect.

Note 1: For net costs of assuming the obligation, see section 775‑100.

Note 2: For tax recognition time, see subsection (7).

Note 3: For currency exchange rate effect, see section 775‑105.

Non‑cash benefit

 (6) The amount you receive 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 receive.

Tax recognition time

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

Right to pay Australian currency

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

775‑55  Ceasing to have an obligation to pay foreign currency—forex realisation event 4

Forex realisation event 4

 (1) Forex realisation event 4 happens if:
 (a) you cease to have an obligation, or a part of an obligation, to pay *foreign currency; and
 (b) any of the following applies:
 (i) the obligation, or the part of the obligation, is an expense or outgoing that you deduct;
 (ii) the obligation, or the part of the obligation, is an element in the calculation of a net amount included in your assessable income (other than under this Division or Division 102 of this Act or Division 5 or 6 of Part III of the Income Tax Assessment Act 1936);
 (iii) the obligation, or the part of the obligation, is an element in the calculation of a net amount that is deductible (other than under Division 5 of Part III of the Income Tax Assessment Act 1936);
 (iv) you incurred the obligation, or the part of the obligation, in return for the acquisition of a *CGT asset;
 (v) you incurred the obligation, or the part of the obligation, as the second, third, fourth or fifth element of the *cost base of a CGT asset;
 (vi) you incurred the obligation, or the part of the obligation, in return for your starting to hold a *depreciating asset, and you deduct an amount under Division 40 or 328