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  

Predominant economic interest

SECTION 250-125   Effectively non-cancellable, long term arrangement test  

250-125(1)  
You lack a predominant economic interest in an asset at a particular time if:


(a) any *arrangement that relates to:


(i) the *tax preferred use of the asset; or

(ii) the *financial benefits to be *provided by the *members of the tax preferred sector in relation to the tax preferred use of the asset;
is *effectively non-cancellable (see section 250-130 ); and


(b) the *arrangement period for the tax preferred use of the asset is:


(i) greater than 30 years; or

(ii) if the arrangement period is less than or equal to 30 years - 75% or more of that part of the asset's *effective life that remains when the tax preferred use of the asset starts.

250-125(2)  
Disregard section 40-102 in working out the asset's *effective life for the purposes of subparagraph (1)(b)(ii).


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