INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 230 - Taxation of financial arrangements  

Subdivision 230-I - Other provisions  

SECTION 230-510   Non-arm's length dealings in relation to financial arrangement  

230-510(1)  
This section applies if:


(a) a balancing adjustment is made under Subdivision 230-G in relation to a *Division 230 financial arrangement you have; and


(b) if the balancing adjustment was made because of paragraph 230-435(1)(b) or (d) (cessations without transfer) - the arrangement is not a *debt interest or loan. Non-arm's length transaction resulting in you starting to have the arrangement

230-510(2)  
Subsection (3) applies if the parties to the dealing that resulted in you starting to have the arrangement were not dealing at *arm's length in relation to the dealing.

230-510(3)  
For the purposes of this Division:


(a) disregard the amount of the *financial benefit (if any) that you provided or received in relation to you starting to have the arrangement; and


(b) instead, treat yourself as having provided or received a financial benefit in relation to you starting to have the arrangement that is equal to the amount of the financial benefit that you would have provided or received if the parties to the dealing mentioned in subsection (2) were dealing at *arm's length in relation to the dealing. Non-arm's length transaction resulting in change of an amount of a financial benefit that you provided or received under the financial arrangement

230-510(4)  
Subsection (5) applies if the parties to a dealing that resulted in a change of an amount of a *financial benefit that you provide or receive under the *financial arrangement were not dealing at *arm's length in relation to the dealing.

230-510(5)  
For the purposes of this Division:


(a) disregard the amount of the *financial benefit (if any) that you provide or receive under the *financial arrangement as a result of the dealing; and


(b) instead, treat yourself as providing or receiving a financial benefit under the financial arrangement as a result of the dealing that is equal to the amount of the financial benefit that you would have provided or received if the parties to the dealing were dealing at *arm's length in relation to the dealing. Non-arm's length transaction resulting in balancing adjustment

230-510(6)  
Subsection (7) applies if the parties to the dealing that resulted in the balancing adjustment mentioned in subsection (1) being made were not dealing at *arm's length in relation to the dealing.

230-510(7)  
For the purposes of this Division:


(a) disregard the amount of the *financial benefit (if any) that you provide or receive in relation to the balancing adjustment; and


(b) instead, treat yourself as providing or receiving a financial benefit in relation to the balancing adjustment that is equal to the amount of the financial benefit that you would have provided or received if the parties to the dealing mentioned in subsection (6) were dealing at *arm's length in relation to the dealing.


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