Income Tax Assessment Act 1997



Division 240 - Arrangements treated as a sale and loan  

Subdivision 240-F - The end of the arrangement  

Operative provisions

SECTION 240-80   What happens if the arrangement is extended or renewed  

This section sets out what happens if, after the end of the *arrangement, the *notional buyer and *notional seller extend or renew the *arrangement.

This Division applies as if the original *arrangement has ended and the extended arrangement or renewed arrangement is a separate arrangement (the new arrangement ).

There is not, however, taken to be any disposal or acquisition as a result of the original arrangement ending or of the new arrangement starting and the *notional buyer does not cease to own the property.


Also, the notional loan principal for the new loan is:

(a) if the *arrangement as extended or renewed states an amount as the cost or value of the property for the purposes of the extension or renewal and the *notional seller and the *notional buyer were dealing with each other at *arm's length in connection with the extension or renewal - the amount so stated; or

(b) otherwise - the amount that could reasonably have been expected to have been paid by the notional buyer for the purchase of the property if:

(i) the notional seller had actually sold the property to the notional buyer when the arrangement was extended or renewed; and

(ii) the notional seller and notional buyer were dealing with each other at arm's length in connection with the sale.


Subdivision 240-G applies to the notional loan for the original arrangement. For that purpose, the notional loan principal for the new arrangement is taken to be a *termination amount paid to the *notional seller under the original arrangement.

View surrounding sectionsView surrounding sectionsBack to top

This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.