Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 230 - Taxation of financial arrangements  

Subdivision 230-C - Fair value method  

SECTION 230-225   Financial arrangements to which election does not apply  

230-225(1)    
A *fair value election does not apply to a *financial arrangement if:


(a) the arrangement is an *equity interest; and


(b) you are the issuer of the equity interest.

230-225(2)    
A *fair value election does not apply to a *financial arrangement if:


(a) you are:


(i) an individual; or

(ii) an entity (other than an individual) that satisfies subsection 230-455(2) , (3) or (4) for the income year in which you start to have the arrangement; and


(b) the arrangement is a *qualifying security; and


(c) you have not made an election under subsection 230-455(7) .

230-225(3)    
A *fair value election does not apply to a *financial arrangement if:


(a) the election is made by the *head company of a *consolidated group or *MEC group; and


(b) the election specifies that the election is not to apply to financial arrangements in relation to *life insurance business carried on by a member of the consolidated group or MEC group; and


(c) the arrangement is one that relates to the life insurance business carried on by a member of the consolidated group or MEC group.

230-225(4)    
A *fair value election does not apply to a *financial arrangement if the arrangement is associated with a business of a kind specified in regulations made for the purposes of this subsection.


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