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-C - Amounts to be included in notional seller ' s assessable income  

Operative provisions

SECTION 240-35   Amounts to be included in notional seller's assessable income  

Notional interest

240-35(1)    
The *notional seller's assessable income of an income year includes the *notional interest for *arrangement payment periods, and parts of arrangement payment periods, in the income year.

Profit on notional sale

240-35(2)    
If the property is not *trading stock of the *notional seller and the consideration for the notional sale of the property exceeds the cost of the acquisition of the property by the notional seller, the excess is included in the notional seller's assessable income of the income year of the notional sale.

Profit on actual sale after notional re-acquisition

240-35(3)    
If:

(a) the *notional seller is taken under this Division to have re-acquired the property from the *notional buyer; and

(b) the notional seller afterwards sells the property; and

(c) the consideration for the sale exceeds the cost of the re-acquisition;

the excess is included in the notional seller's assessable income of the income year in which the sale occurred.