INCOME TAX ASSESSMENT ACT 1997 - SECT 230.50 Financial arrangement (equity interest or right or obligation in relation to equity interest)

INCOME TAX ASSESSMENT ACT 1997 - SECT 230.50

  (1)   You also have a financial arrangement if you have an * equity interest. The equity interest constitutes the financial arrangement.

  (2)   You also have a financial arrangement if:

  (a)   you have, under an * arrangement:

  (i)   a legal or equitable right to receive something that is a financial arrangement under this section; or

  (ii)   a legal or equitable obligation to provide something that is a financial arrangement under this section; or

  (iii)   a combination of one or more such rights and/or obligations; and

  (b)   the right, obligation or combination does not constitute, or form part of, a financial arrangement under subsection   230 - 45(1).

The right, obligation or combination referred to in paragraph   (a) constitutes the financial arrangement.

Note 1:   Paragraph   230 - 40(4)(e) prevents the accruals method or the realisation method being applied to something that is a financial arrangement under this section.

Note 2:   Subsection   230 - 270(1) prevents the retranslation method being applied to something that is a financial arrangement under this section.

Note 3:   Subsection   230 - 330(1) prevents the hedging method being applied to something that is a financial arrangement under this section.