09 Oct 14 TD 2014/D10 (FRE 4 on repayment of loan obligation) withdrawn
On 8 October 2014, the ATO withdrew TD 2014/D10 (Income tax: does forex realisation event 4 happen to the debtor under subsection 775-55(1) of the Income Tax Assessment Act 1997 on repayment of a loan taken out prior to the effective date of a choice to use the applicable functional currency and denominated in the same non-AUD currency that later becomes the applicable functional currency?) with effect from the same day.
The Notice of Withdrawal (TD 2014/D10W) states, in part, as follows:
"1. TD 2014/D10 deals with whether subsection 775-55(1) of the Income Tax Assessment Act 1997 is satisfied on repayment of a loan obligation which straddles the effective date of an applicable functional choice and which is denominated in the same non-AUD currency as the applicable functional currency.
2. Following comments received as part of the public consultation process for TD 2014/D10, the ATO has decided to withdraw the draft determination. TD 2014/D10 will be replaced with a new draft determination which will provide that forex realisation event 4 does not happen in the circumstances outlined in TD 2014/D10."