Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 775.100

Net costs of assuming an obligation to receive foreign currency

             (1)  For the purposes of this Division, the net costs of assuming an obligation, or a part of an obligation, to receive * foreign currency are the total of:

                     (a)  the money you:

                              (i)  are required to pay; or

                             (ii)  would be required to pay in the event of the exercise of an option;

                            in respect of the fulfilment of the obligation or the part of the obligation; and

                     (b)  the * market value of any * non-cash benefit you:

                              (i)  are required to provide; or

                             (ii)  would be required to provide in the event of the exercise of an option;

                            in respect of the fulfilment of the obligation or the part of the obligation;

reduced by the amount worked out under subsection (2).

             (2)  The amount worked out under this subsection is the total of:

                     (a)  the money you:

                              (i)  received; or

                             (ii)  are entitled to receive;

                            because you incurred the obligation or the part of the obligation; and

                     (b)  the * market value of any * non-cash benefit you:

                              (i)  received or obtained; or

                             (ii)  are entitled to receive or obtain;

                            because you incurred the obligation or the part of the obligation;

reduced by any amounts that are included in assessable income under a provision of this Act other than this Division.

             (3)  To avoid doubt, paragraphs (2)(a) and (b) do not apply to money or a * non-cash benefit that you:

                     (a)  received or obtained; or

                     (b)  are entitled to receive or obtain;

because of the fulfilment of the obligation or the part of the obligation.



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