Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 230.510

  (1)   This section applies if:

  (a)   a balancing adjustment is made under Subdivision   230 - G in relation to a * Division   230 financial arrangement you have; and

  (b)   if the balancing adjustment was made because of paragraph   230 - 435(1)(b) or (d) (cessations without transfer)--the arrangement is not a * debt interest or loan.

Non - arm's length transaction resulting in you starting to have the arrangement

  (2)   Subsection   (3) applies if the parties to the dealing that resulted in you starting to have the arrangement were not dealing at * arm's length in relation to the dealing.

  (3)   For the purposes of this Division:

  (a)   disregard the amount of the * financial benefit (if any) that you provided or received in relation to you starting to have the arrangement; and

  (b)   instead, treat yourself as having provided or received a financial benefit in relation to you starting to have the arrangement that is equal to the amount of the financial benefit that you would have provided or received if the parties to the dealing mentioned in subsection   (2) were dealing at * arm's length in relation to the dealing.

Non - arm's length transaction resulting in change of an amount of a financial benefit that you provided or received under the financial arrangement

  (4)   Subsection   (5) applies if the parties to a dealing that resulted in a change of an amount of a * financial benefit that you provide or receive under the * financial arrangement were not dealing at * arm's length in relation to the dealing.

  (5)   For the purposes of this Division:

  (a)   disregard the amount of the * financial benefit (if any) that you provide or receive under the * financial arrangement as a result of the dealing; and

  (b)   instead, treat yourself as providing or receiving a financial benefit under the financial arrangement as a result of the dealing that is equal to the amount of the financial benefit that you would have provided or received if the parties to the dealing were dealing at * arm's length in relation to the dealing.

Non - arm's length transaction resulting in balancing adjustment

  (6)   Subsection   (7) applies if the parties to the dealing that resulted in the balancing adjustment mentioned in subsection   (1) being made were not dealing at * arm's length in relation to the dealing.

  (7)   For the purposes of this Division:

  (a)   disregard the amount of the * financial benefit (if any) that you provide or receive in relation to the balancing adjustment; and

  (b)   instead, treat yourself as providing or receiving a financial benefit in relation to the balancing adjustment that is equal to the amount of the financial benefit that you would have provided or received if the parties to the dealing mentioned in subsection   (6) were dealing at * arm's length in relation to the dealing.