The Australian income tax implications ofderiving a foreign currency gainor incurring a foreign currency loss are mainly determined by the provisionsofDivision 775 ofthe Income Tax Assessment Act 1997. They describe eight'lorex' realisation events and the way in which a forex gain or loss is workedout for each. Forex gains are included in, and forex losses are deductiblefrom, a taxpayer s assessable income for the income year in which the forexrealisation event or events happened, except to the extent that the gain or lossis ofa private or domestic nature. Division 775 was enacted on the repeal ofDivision 3B ofPart III ofthe Income Tax Assessment Act 1936 and operatesfrom 17 December 2003.
|Journal||The University of Western Australia Law Review|
|Publication status||Published - 2008|