Income Tax Assessment Act 1997
A right, or the amount of a return, is contingent on aspects of the economic performance of an entity, or a part of the entity ' s activities, if the right or return is contingent on the economic performance of that entity, or that part of those activities, but not solely because of one of the following:
(a) the ability or willingness of an entity to meet the obligation to satisfy the right to the return;
(b) the receipts or turnover of the entity or the turnover generated by those activities.
The regulations may specify circumstances in which a right or return is to be taken to be contingent, or not contingent, on aspects of the economic performance of an entity or a part of an entity ' s activities.
The regulations may provide that paragraph (1)(b) does not apply in the circumstances specified in the regulations. 974-85(4)
The regulations may provide that an interest that:
(a) is covered by item 2 in the table in subsection 974-75(1) or paragraph 974-80(2)(a) ; and
(b) arises in the circumstances specified in the regulations;
is not an equity interest because of:
(c) the limited extent to which the right or return that the interest carries is *contingent on aspects of the economic performance of an entity or a part of the entity ' s activities; or
(d) the practical insignificance of the right or return that the interest carries being contingent on that performance.
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.