Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 250.5

                   The main objects of this Division are:

                     (a)  to deny or reduce your * capital allowance deductions in respect of an asset if the asset is put to a * tax preferred use and you have insufficient economic interest in the asset; and

                     (b)  if your capital allowance deductions are denied or reduced, to treat the * arrangement for the tax preferred use of the asset as a loan that is taxed as a financial arrangement (on a compounding accruals basis).

Table of sections

Overall test

250-10      When this Division applies to you and an asset

250-15      General test

250-20      First exclusion--small business entities

250-25      Second exclusion--financial benefits under minimum value limit

250-30      Third exclusion--certain short term or low value arrangements

250-35      Exceptions to section 250-30

250-40      Fourth exclusion--sum of present values of financial benefits less that amount otherwise assessable

250-45      Fifth exclusion--Commissioner determination

Tax preferred use of asset

250-50      End user of an asset

250-55      Tax preferred end user

250-60      Tax preferred use of an asset

250-65      Arrangement period for tax preferred use

250-70      New tax preferred use at end of arrangement period if tax preferred use continues

250-75      What constitutes a separate asset for the purposes of this Division

250-80      Treatment of particular arrangements in the same way as leases

Financial benefits in relation to tax preferred use

250-85      Financial benefits in relation to tax preferred use of an asset

250-90      Financial benefit provided directly or indirectly

250-95      Expected financial benefits in relation to an asset put to tax preferred use

250-100    Present value of financial benefit that has already been provided

Discount rate to be used in working out present values

250-105    Discount rate to be used in working out present values

Predominant economic interest

250-110    Predominant economic interest

250-115    Limited recourse debt test

250-120    Right to acquire asset test

250-125    Effectively non-cancellable, long term arrangement test

250-130    Meaning of effectively non-cancellable arrangement

250-135    Level of expected financial benefits test

250-140    When to retest predominant economic interest under section 250-135

Overall test