Commonwealth Consolidated Acts

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Giving a financial benefit

             (1)  In determining what constitutes giving a financial benefit :

                     (a)  give a broad interpretation to financial benefits being given, even if criminal or civil penalties may be involved; and

                     (b)  the economic and commercial substance of conduct is to prevail over its legal form; and

                     (c)  disregard any consideration that is or may be given for the benefit, even if the consideration is adequate.

             (2)  Giving a financial benefit includes the following:

                     (a)  giving a financial benefit indirectly, for example, through 1 or more interposed entities;

                     (b)  giving a financial benefit by making an informal agreement, oral agreement or an agreement that has no binding force;

                     (c)  giving a financial benefit that does not involve paying money (for example by conferring a financial advantage).

             (3)  The following are examples of giving a financial benefit to a related party:

                     (a)  giving or providing the related party finance or property;

                     (b)  buying an asset from or selling an asset to the related party;

                     (c)  leasing an asset from or to the related party;

                     (d)  supplying services to or receiving services from the related party;

                     (e)  issuing securities or granting an option to the related party;

                      (f)  taking up or releasing an obligation of the related party.

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