Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 250.130

  (1)   An * arrangement that relates to * financial benefits to be * provided by a * member of the tax preferred sector in relation to the tax preferred use of an asset is effectively non - cancellable if:

  (a)   the arrangement can be cancelled only with:

  (i)   your permission; or

  (ii)   the permission of a * connected entity of yours; or

  (iii)   an agent or entity acting on your behalf (or on behalf of a connected entity of yours); or

  (b)   the arrangement can be cancelled without the permission of an entity referred to in paragraph   (a) but, if the arrangement were cancelled, the member of the tax preferred sector or another member of the tax preferred sector:

  (i)   would be required to enter into a new arrangement for the * provision of financial benefits in relation to the tax preferred use of the asset; or

  (ii)   would incur a penalty and the magnitude of the penalty would be such as to discourage cancellation.

  (2)   For these purposes, if a * member of the tax preferred sector defaults under an * arrangement and the arrangement is cancelled, the arrangement is to be taken to have been cancelled without the permission of an entity referred to in paragraph   (1)(a).