Commonwealth Consolidated Acts

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.