Commonwealth Consolidated Acts Commonwealth Consolidated ActsThe main objects of this Division are:
(a) to deny or reduce your * capital allowance deductions in respect of an asset if the asset is put to a * tax preferred use and you have insufficient economic interest in the asset; and
(b) if your capital allowance deductions are denied or reduced, to treat the * arrangement for the tax preferred use of the asset as a loan that is taxed as a financial arrangement (on a compounding accruals basis).
Table of sections
Overall test
250 - 10 When this Division applies to you and an asset
250 - 15 General test
250 - 20 First exclusion--small business entities
250 - 25 Second exclusion--financial benefits under minimum value limit
250 - 30 Third exclusion--certain short term or low value arrangements
250 - 35 Exceptions to section 250 - 30
250 - 40 Fourth exclusion--sum of present values of financial benefits less that amount otherwise assessable
250 - 45 Fifth exclusion--Commissioner determination
Tax preferred use of asset
250 - 50 End user of an asset
250 - 55 Tax preferred end user
250 - 60 Tax preferred use of an asset
250 - 65 Arrangement period for tax preferred use
250 - 70 New tax preferred use at end of arrangement period if tax preferred use continues
250 - 75 What constitutes a separate asset for the purposes of this Division
250 - 80 Treatment of particular arrangements in the same way as leases
Financial benefits in relation to tax preferred use
250 - 85 Financial benefits in relation to tax preferred use of an asset
250 - 90 Financial benefit provided directly or indirectly
250 - 95 Expected financial benefits in relation to an asset put to tax preferred use
250 - 100 Present value of financial benefit that has already been provided
Discount rate to be used in working out present values
250 - 105 Discount rate to be used in working out present values
250 - 110 Predominant economic interest
250 - 115 Limited recourse debt test
250 - 120 Right to acquire asset test
250 - 125 Effectively non - cancellable, long term arrangement test
250 - 130 Meaning of effectively non - cancellable arrangement
250 - 135 Level of expected financial benefits test
250 - 140 When to retest predominant economic interest under section 250 - 135