Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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.
(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).
(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.