INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 230 - Taxation of financial arrangements  

Subdivision 230-A - Core rules  

General rules

SECTION 230-60   When financial benefit provided or received under financial arrangement  

Financial benefit provided under financial arrangement

230-60(1)  
You are taken, for the purposes of this Division, to have (or to have had) an obligation to provide a *financial benefit under a *financial arrangement if:


(a) you have (or had) an obligation to provide the financial benefit in relation to the arrangement; and


(b) the financial benefit would not otherwise be treated as one that you have (or had) an obligation to provide under the arrangement; and


(c) the financial benefit plays an integral role in determining:


(i) whether you make a gain or loss from the arrangement; or

(ii) the amount of such a gain or loss.

Paragraph (a) applies even if the entity to which you provide the financial benefit is not a party to the arrangement.

Note:

This means that the financial benefits you provide to acquire the financial arrangement (whether to the issuer, a previous holder or a third party) are taken to be financial benefits you provide under the arrangement. The financial benefits you provide may include, for example, fees paid or the forgoing of rights to receive a financial benefit.

Financial benefit received under financial arrangement

230-60(2)  
You are taken, for the purposes of this Division, to have (or to have had) a right to receive a *financial benefit under a *financial arrangement if:


(a) you have (or had) a right to receive the financial benefit in relation to the arrangement; and


(b) the financial benefit would not otherwise be treated as one that you have (or had) a right to receive under the arrangement; and


(c) the financial benefit plays an integral role in determining:


(i) whether you make a gain or loss from the arrangement; or

(ii) the amount of such a gain or loss.

Paragraph (a) applies even if the entity that provides the financial benefit is not a party to the arrangement.

Note:

The financial benefits you receive may include, for example, the waiving of an obligation you have to provide a financial benefit.


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