Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 775.220

Material variation of a facility agreement--forex realisation event 7

Forex realisation event 7

  (1)   Forex realisation event 7 happens if:

  (a)   a material variation is made to the terms or conditions of a * facility agreement; or

  (b)   a material variation is made to the effect of a facility agreement; or

  (c)   a material variation is made to the type or types of security that can be issued under a facility agreement;

so long as you have made a choice for roll - over relief for the facility agreement, and that choice is in effect.

Note:   See also subsections   (7) and (8).

Time of the event

  (2)   The time of the event is when the material variation happens.

Forex realisation gain

  (3)   You make a forex realisation gain if:

  (a)   the total of the forex realisation gains that you would have made as a result of forex realisation event 6 if you had, at the time of forex realisation event 7:

  (i)   discharged your liabilities under each of the notional loans to which the agreement relates; and

  (ii)   not rolled - over any * eligible security;

exceeds:

  (b)   the total of the forex realisation losses that you would have made as a result of forex realisation event 6 if you had, at the time of forex realisation event 7:

  (i)   discharged your liabilities under each of the notional loans to which the agreement relates; and

  (ii)   not rolled - over any eligible security.

The amount of the forex realisation gain is the amount of the excess.

Note:   See also subsection   (9).

Forex realisation loss

  (4)   You make a forex realisation loss if:

  (a)   the total of the forex realisation losses that you would have made as a result of forex realisation event 6 if you had, at the time of forex realisation event 7:

  (i)   discharged your liabilities under each of the notional loans to which the agreement relates; and

  (ii)   not rolled - over any * eligible security;

exceeds:

  (b)   the total of the forex realisation gains that you would have made as a result of forex realisation event 6 if you had, at the time of forex realisation event 7:

  (i)   discharged your liabilities under each of the notional loans to which the agreement relates; and

  (ii)   not rolled - over any eligible security.

The amount of the forex realisation loss is the amount of the excess.

Note:   See also subsection   (9).

Termination of choice

  (5)   If forex realisation event 7 happens in relation to a * facility agreement:

  (a)   your choice for roll - over relief for the facility agreement ceases to have effect immediately after the event; and

  (b)   you are not entitled to make a fresh choice for roll - over relief for the facility agreement.

Modification of tax recognition time

  (6)   If:

  (a)   forex realisation event 7 happens in relation to a * facility agreement; and

  (b)   an * eligible security issued by you under the facility agreement was in existence at the time of that event; and

  (c)   at a later time, forex realisation event 4 happens because you cease to have an obligation, or a part of an obligation, to pay * foreign currency under the security;

section   775 - 55 applies to you as if the tax recognition time for the obligation, or the part of the obligation, were the time of forex realisation event 7 (despite subsection   775 - 55(7)).

Material variation

  (7)   To avoid doubt, if a variation to:

  (a)   the terms or conditions of a facility agreement; or

  (b)   the effect of a facility agreement;

results in the agreement ceasing to be a facility agreement, the variation is taken to be a material variation for the purposes of subsection   (1).

  (8)   The regulations may provide that a specified kind of variation is taken to be a material variation for the purposes of subsection   (1).

Total amount

  (9)   To avoid doubt, the total amount referred to in paragraph   (3)(b) or (4)(b) may be zero.


AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback