Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 247.30

             (1)  If the * capital protection under a * capital protected borrowing is invoked:

                     (a)  the borrower is taken to have exercised the put option; and

                     (b)  any interest in a * share, unit in a unit trust or stapled security that is acquired by the lender or another entity under the * arrangement as a result of that capital protection being invoked is taken to have been disposed of by the borrower as a result of the exercise of the option.

             (2)  If the * capital protection under a * capital protected borrowing is not invoked on or before the last occasion on which it could have been, the put option is taken to have expired.

Note:          If a borrower under a capital protected borrowing holds the protected things on capital account, the exercise or expiry of the put option may give rise to a capital gain or capital loss: see sections 104- 25 (CGT event C2) and 134-1 (exercise of options).

Table of Subdivisions

             Guide to Division 250

250-A   Objects

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

250-C    Denial of, or reduction in, capital allowance deductions

250-D   Deemed loan treatment of financial benefits provided for tax preferred use

250-E    Taxation of deemed loan

250-F    Treatment of asset when Division ceases to apply to the asset

250-G   Objections against determinations and decisions by the Commissioner

Guide to Division 250