With the implementation of residence based taxation in 2001, section 25D was introduced into the Income Tax Act in order to provide for the determination of the taxable income or loss of any resident that is derived from a foreign source in the foreign currency of the country from where the income is so derived. In Australia the tax authority publishes the average rates to assist taxpayers in translating foreign income into Australian dollars. The average yearly or part yearly (where a business commences or ceases during a month) exchange rate basis is to be applied as a general rule. However, where a taxpayer carries on business for the whole or a part of a year, but business transactions are mainly concentrated during a part of the relevant period, the use of a yearly or part yearly average rate to translate income could produce unwarranted distortions. Accordingly, where a taxpayer can demonstrate that those distortions would be significant, the taxpayer may be permitted to use (for that year of income) an average rate that more appropriately reflects the taxpayer's activities.