Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 16E - Accruals assessability, etc., in respect of certain security payments  

SECTION 159GQC  

159GQC   IMPLICIT INTEREST RATE FOR FIXED RETURN SECURITY  

For the purposes of the formula component ``Implicit interest rate'' in subsection 159GQB(1) , the rate of interest for a fixed return security in relation to a taxpayer is the rate of compound interest per period of 6 months at which:

(a) the sum of the present values of all amounts payable under the security during the taxpayer's maximum term;

equals:

(b) the issue price or the transfer price, as the case requires, of the security.