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-B - The notional sale and notional loan  

Operative provisions

SECTION 240-17   Who is the notional seller and the notional buyer?  

240-17(1)    
An entity is the notional seller if it is a party to the *arrangement and:

(a) actually owns the property; or

(b) is the owner of the property because of a previous operation of this Division.

240-17(2)    
An entity is the notional buyer if it is a party to the *arrangement and, under the arrangement, has the *right to use the property.

Example:

If the arrangement is a hire purchase agreement, the finance provider will be the notional seller and the hirer will be the notional buyer.