Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 250 - Assets put to tax preferred use  

Subdivision 250-B - When this Division applies to you and an asset  

Tax preferred use of asset

SECTION 250-65   Arrangement period for tax preferred use  

Start of the arrangement period

250-65(1)  
The arrangement period for a particular *tax preferred use of an asset starts when that tax preferred use of the asset starts. End of the arrangement period

250-65(2)  
Subject to subsection (3), the arrangement period for a particular *tax preferred use of an asset is taken to end on the day that is the date on which the tax preferred use of the asset may reasonably be expected, or is likely, to end.

250-65(3)  
The arrangement period for the *tax preferred use of the asset ends when this Division ceases to apply to you and the asset if that happens before the day referred to in subsection (2).

250-65(4)  
In determining when a particular *tax preferred use of an asset is likely to end:


(a) regard must be had to:


(i) the terms of, and any other circumstances relating to, any *arrangement dealing with that tax preferred use of the asset; and

(ii) the terms of, and any other circumstances relating to, any arrangement dealing with the *provision of *financial benefits in relation to that tax preferred use of the asset; and


(b) it must be assumed that any right that an entity has to renew or extend such an arrangement will not be exercised (unless it is reasonable to assume that the right will be exercised because of the commercial consequences for the entity (or a *connected entity) of not exercising the right). Tax preferred uses of asset by entity and connected entity

250-65(5)  
For the purposes of this section:


(a) the *tax preferred use of an asset by an entity; and


(b) the tax preferred use of the asset by a *connected entity of that entity;

are taken to constitute a single tax preferred use of the asset.


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