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 250-120   Right to acquire asset test  

250-120(1)  
You lack a predominant economic interest in an asset at a particular time if, at that time:


(a) the asset is to be transferred to a *member of the tax preferred sector after the end of the *arrangement period; and


(b) the consideration for the transfer is not fixed as the *market value of the asset at the time of the transfer.

250-120(2)  
You also lack a predominant economic interest in an asset at a particular time if, at that time:


(a) a *member of the tax preferred end user group has, or will have:


(i) a right, obligation or contingent obligation to purchase or acquire the asset or a legal or equitable interest in the asset; or

(ii) a right to require the transfer of the asset or a legal or equitable interest in the asset; and


(b) the consideration for the purchase, acquisition or transfer is not fixed as the *market value of the asset at the time of the purchase, acquisition or transfer.

To avoid doubt, this section does not apply to the asset merely because your interest in the asset is one that ceases to exist after the passage of a particular period of time.


 

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