Commonwealth of Australia Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 230.10

                   The objects of this Division are:

                     (a)  to minimise the extent to which the tax treatment of gains and losses from your * financial arrangements distorts, by providing inappropriate impediments and stimulation, your trading, financing and investment decisions and your risk taking and risk management; and

                     (b)  to do so by aligning more closely the tax and commercial recognition of gains and losses from your financial arrangements in the following ways:

                              (i)  by allocating the gains and losses to income years throughout the life of your financial arrangements on a reasonable basis;

                             (ii)  by generally recognising gains and losses on revenue rather than capital account; and

                     (c)  to appropriately take account of, and minimise, your compliance costs.

Tax treatment of gains and losses from financial arrangements