Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_12:p4
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 4/39)
Character Range: 148246–151057

the arrangement.
 (3) A *financial arrangement that is a *derivative financial arrangement, or is not a derivative financial arrangement but is a *foreign currency hedge, is a hedging financial arrangement if:
 (a) you create, acquire or apply the arrangement for the purpose of hedging a risk or risks in relation to something; and
 (b) one or more of subsections (4), (5), (6) or (7) is satisfied; and
 (c) the requirements of paragraphs (1)(b) or (c) are not able to be satisfied:
 (i) because of the requirements of the standards referred to in paragraph 230‑315(2)(a); and
 (ii) not because of any act or omission on your part to deliberately fail to satisfy those requirements; and
 (d) you satisfy the additional recording requirements of subsection 230‑355(5); and
 (e) you satisfy the requirements (if any) prescribed by the regulations for the purposes of this paragraph.
 (4) This subsection is satisfied if:
 (a) the *financial arrangement hedges a foreign currency risk in relation to an anticipated dividend from a *connected entity; and
 (b) the dividend is *non‑assessable non‑exempt income under section 23AJ of the Income Tax Assessment Act 1936.
 (5) This subsection is satisfied if:
 (a) you enter into a *financial arrangement with a *connected entity; and
 (b) the standards referred to in paragraph 230‑315(2)(a) require that a consolidated financial report be prepared that deals with both your affairs and the affairs of the connected entity; and
 (c) the report properly reflects your affairs; and
 (d) the arrangement satisfies the requirements of paragraph (1)(a); and
 (e) the arrangement would satisfy the requirements of paragraph (1)(b) or (c) but for the fact that the consolidated report disregards the arrangement.
 (6) This subsection is satisfied if:
 (a) the period for which the risk or risks are hedged does not straddle 2 or more income years; and
 (b) the *financial arrangement satisfies the requirements of paragraph (1)(a); and
 (c) the arrangement would satisfy the requirements of paragraph (1)(c) if the period for which the risk or risks that are hedged did straddle 2 or more income years.
 (7) This subsection is satisfied if the requirements prescribed by the regulations for the purposes of this subsection are satisfied.

Financial arrangement hedging more than one type of risk
 (8) A *financial arrangement that hedges more than one type of risk may only be a hedging financial arrangement if the standards referred to in paragraph (1)(b) allow the arrangement to be designated as a hedge of those risks.

More than one financial arrangement hedging the same risk or risks
 (9) If 2 or more *financial arrangements hedge the same risk or risks, each of the arrangements may only be a hedging financial arrangement if the standards referred to in paragraph