Income Tax Assessment Act 1997



Division 240 - Arrangements treated as a sale and loan  

Subdivision 240-B - The notional sale and notional loan  

Operative provisions

SECTION 240-17   Who is the notional seller and the notional buyer?  

An entity is the notional seller if it is a party to the *arrangement and:

(a) actually owns the property; or

(b) is the owner of the property because of a previous operation of this Division.

An entity is the notional buyer if it is a party to the *arrangement and, under the arrangement, has the *right to use the property.


If the arrangement is a hire purchase agreement, the finance provider will be the notional seller and the hirer will be the notional buyer.


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