Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 701.63

Right to future income and WIP amount asset

  (5)   A right to future income is a valuable right (including a contingent right) to receive an amount if:

  (a)   the valuable right forms part of a contract or agreement; and

  (b)   the * market value of the valuable right (taking into account all the obligations and conditions relating to the right) is greater than nil; and

  (c)   the valuable right is neither a * Division   230 financial arrangement nor a part of a Division   230 financial arrangement; and

  (d)   it is reasonable to expect that an amount attributable to the right will be included in the assessable income of any entity at a later time.

  (6)   WIP amount asset means an asset that is in respect of work (but not goods) that has been partially performed by a recipient mentioned in paragraph   25 - 95(3)(b) for a third entity but not yet completed to the stage where a recoverable debt has arisen in respect of the completion or partial completion of the work.


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