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 230-75   Apportionment when financial benefit provided or obligation ceases  

230-75(1)  
Apply subsection (2) in working out whether you make, or will make, a gain or loss (and the amount of the gain or loss) at a time when:


(a) you provide a particular *financial benefit under the *financial arrangement; or


(b) one of your obligations under a financial arrangement ceases.

The gain or loss is to be calculated in nominal (and not *present value) terms.

230-75(2)  


You must have regard to the extent to which the *financial benefits that you have received, or are to receive or might receive, under the *financial arrangement are reasonably attributable, at the time mentioned in subsection (1), to the benefit or obligation referred to in paragraph (1)(a) or (b).

230-75(3)  
Any attribution made under subsection (2) must reflect appropriate and commercially accepted valuation principles that properly take into account:


(a) the nature of the rights and obligations under the *financial arrangement; and


(b) the risks associated with each *financial benefit, right and obligation under the arrangement; and


(c) the time value of money.

230-75(4)  
(Repealed by No 85 of 2013)

Note:

Generally, no financial benefit you have received, or are to receive or might receive, under a financial arrangement is reasonably attributable to an amount you provide that is in the nature of interest.


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