Income Tax Assessment Act 1997
A balancing adjustment is made under this Subdivision if:
(a) you transfer to another entity all of your rights and/or obligations under a *financial arrangement; or
(b) all of your rights and/or obligations under a financial arrangement otherwise cease; or
(c) you transfer to another entity:
(i) a proportionate share of all of your rights and/or obligations under a financial arrangement; or
(ii) a right or obligation that you have under a financial arrangement to a specifically identified *financial benefit; or
(iii) a proportionate share of a right or obligation that you have under a financial arrangement to a specifically identified financial benefit; or
(d) an *arrangement that is a *Division 230 financial arrangement ceases to be a financial arrangement. 230-435(2)
Paragraphs (1)(a), (b) and (c) do not apply to a right or obligation under a *financial arrangement unless that right or obligation is one of the rights or obligations that constitute the financial arrangement.
If the *financial arrangement is an asset of yours at the time the event referred to in subsection (1) occurs, paragraphs (1)(a) and (c) do not apply unless the effect of the transfer is to transfer to the other entity substantially all the risks and rewards of ownership of the interest transferred. 230-435(4)
If a *financial arrangement is an asset of yours, for the purposes of applying this Subdivision to the arrangement, you are treated as transferring a right under the arrangement to another entity if:
(a) you retain the right but assume a new obligation; and
(b) your assumption of the new obligation has the same effect, in substance, as transferring the right to another entity; and
(c) the new obligation arises only to the extent to which the right to *financial benefits under the arrangement is satisfied; and
(d) you cannot sell or pledge the right (other than as security in relation to the new obligation); and
(e) you must, under the new obligation, provide financial benefits you receive in relation to the right to the entity to which you owe the new obligation without delay. Historic rate rollover of derivative financial arrangement 230-435(5)
For the purposes of paragraph (1)(b), all of your rights and/or obligations under a *financial arrangement that is a *derivative financial arrangement are taken to cease if there is an historic rate rollover of the arrangement.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.