Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 230.75

  (1)   Apply subsection   (2) in working out whether you make, or will make, a gain or loss (and the amount of the gain or loss) at a time when:

  (a)   you provide a particular * financial benefit under the * financial arrangement; or

  (b)   one of your obligations under a financial arrangement ceases.

The gain or loss is to be calculated in nominal (and not * present value) terms.

  (2)   You must have regard to the extent to which the * financial benefits that you have received, or are to receive or might receive, under the * financial arrangement are reasonably attributable, at the time mentioned in subsection   (1), to the benefit or obligation referred to in paragraph   (1)(a) or (b).

  (3)   Any attribution made under subsection   (2) must reflect appropriate and commercially accepted valuation principles that properly take into account:

  (a)   the nature of the rights and obligations under the * financial arrangement; and

  (b)   the risks associated with each * financial benefit, right and obligation under the arrangement; and

  (c)   the time value of money.

Note:   Generally, no financial benefit you have received, or are to receive or might receive, under a financial arrangement is reasonably attributable to an amount you provide that is in the nature of interest.