Income Tax Assessment Act 1997

CHAPTER 6 - THE DICTIONARY  

PART 6-1 - CONCEPTS AND TOPICS  

Division 974 - Debt and equity interests  

Subdivision 974-B - Debt interests  

SECTION 974-25   Exceptions to the debt test  

Short term schemes

974-25(1)  
A *scheme does not satisfy the debt test in subsection 974-20(1) in relation to an entity if:


(a) at least a substantial part of a *financial benefit mentioned in that subsection does not consist of either of the following or a combination of either of the following:


(i) a liquid or monetary asset;

(ii) an amount of money; and


(b) the scheme requires the financial benefit mentioned in paragraph 974-20(1)(c) to be provided within a period of no more than 100 days of the receipt of the first financial benefit mentioned in paragraph 974-20(1)(b) ; and


(c) the financial benefit mentioned in paragraph 974-20(1)(c) :


(i) is in fact provided within that period; or

(ii) is not provided within that period because the entity required to provide the benefit neglects to provide the benefit within that period (although willing to do so); or

(iii) is not provided within that period because the entity required to provide the benefit is unable to provide the benefit within that period (although willing to do so); and


(d) the scheme is not one of a number of *related schemes that together are taken to give rise to a *debt interest under subsection 974-15(2) . Regulations

974-25(2)  
The regulations may make provision in relation to the application or operation of subsection (1). Without limiting this, the regulations may:


(a) specify what constitutes a substantial part of a *financial benefit for the purposes of paragraph (1)(a); or


(b) specify a period to be substituted for the period referred to in paragraph (1)(b).


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