Published on 01 Feb 04
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
The recognition of foreign exchange gains and losses has long been a murky issue in the tax return checklists of practitioners. Not only have there been issues of when is
the appropriate time to recognise such a gain or loss, but also the question of whether the gain or loss should be on
revenue or capital account.
In an attempt to clarify the law, discrete provisions have been added to the tax legislation.
In this article, we summarise the basic rules of forex recognition. Part 2 of this series, published in the March 2004 edition of Taxation in Australia, examines some of the variations, concessions and transitional rules that have been introduced.
Andy is a Solicitor at Hall & Wilcox Lawyers.
Current at March 2004 Current at 19 November 2004
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