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-E - Taxation of deemed loan  

The accruals method

SECTION 250-250   Allocating gain or loss to income years  

250-250(1)  
You are taken, for the purposes of section 250-205 , to make, for an income year, a gain or loss equal to a part of a gain or loss if:


(a) that part of the gain or loss is allocated to an interval under section 250-245 ; and


(b) that interval falls wholly within that income year.

250-250(2)  
If:


(a) a part of a gain or loss is allocated to an interval under section 250-245 ; and


(b) that interval straddles 2 income years;

you are taken, for purposes of section 250-205 , to make a gain or loss equal to so much of that part of the gain or loss as is allocated between those income years on a reasonable basis.

250-250(3)  
If:


(a) a *consolidated group or *MEC group has a *financial arrangement; and


(b) a subsidiary member of the group ceases to be a member of the group at a particular time (the exit time ); and


(c) immediately after the exit time, the subsidiary member has the financial arrangement;

an income year of the group is taken, for the purposes of applying this section to the group and the financial arrangement, to end at the exit time.


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