Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 240.105

  (1)   This section applies at the end of the * arrangement.

  (2)   If the sum of:

  (a)   all amounts (other than * termination amounts) that were paid or payable to the * notional seller under the * arrangement; and

  (b)   any termination amounts paid or payable to the notional seller;

exceeds the amount worked out using the formula in subsection   (4), the excess is included in the notional seller's assessable income of the income year in which the arrangement ends.

Note:   Subsection   240 - 80(5) provides that the amount of a notional loan that is taken to be made by an extended or renewed arrangement is a termination amount paid under the previous arrangement.

  (3)   If the amount worked out using the formula in subsection   (4) exceeds:

  (a)   all amounts (other than * termination amounts) that were paid or payable to the * notional seller under the * arrangement; and

  (b)   any termination amounts paid or payable to the notional seller;

the notional seller is entitled to deduct the excess in the income year in which the arrangement ends.

Note:   Subsection   240 - 80(5) provides that the amount of a notional loan that is taken to be made by an extended or renewed arrangement is a termination amount paid under the previous arrangement.

  (4)   The formula for the purposes of subsections   (2) and (3) is:

where:

"assessed notional interest" means the * notional interest that has been or is to be included in the * notional seller's assessable income of any income year.