Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 240 - Arrangements treated as a sale and loan  

Subdivision 240-G - Adjustments if total amount assessed to notional seller differs from amount of interest  

Operative provisions

SECTION 240-110   Adjustments for notional buyer  

240-110(1)    
If:

(a) an amount is included in the *notional seller's assessable income of an income year under subsection 240-105(2) ; or

(b) an amount would have been so included if the notional seller had been subject to tax on assessable income;

the *notional buyer is entitled to deduct a corresponding amount in the notional buyer's income year.

240-110(2)    
If:

(a) the *notional seller is entitled to deduct an amount for an income year under subsection 240-105(3) ; or

(b) the notional seller would have been so entitled if the *notional seller had been subject to tax on assessable income;

a corresponding amount is included in the notional buyer's assessable income for the notional buyer's income year.

240-110(3)    
The *notional buyer is entitled to a deduction, and is required to include an amount in his or her assessable income only to the extent (if any) that the notional buyer would, apart from this Division, have been entitled to deduct *arrangement payments if no part of those payments were capital in nature.