Document ID: chunk:federal_register_of_legislation:C2025C00014:section:26bc:p9
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 26BC (pt 9/9)
Character Range: 259497–261631

compensatory payment.
 (11A) If:
 (a) the lender receives from the borrower a distribution or identical property covered by subparagraph (3)(c)(iv); and
 (b) assuming that the borrowed security had continued to be held by the lender, an amount (in this subsection called the otherwise assessable amount) would have been included in the lender's assessable income of a year of income in respect of the distribution concerned;
the lender's assessable income of the year of income includes an amount equal to the otherwise assessable amount.
 (11B) If:
 (a) the lender receives from the borrower a compensatory payment covered by sub‑subparagraph (3)(c)(iv)(C); and
 (b) assuming that the borrowed security had continued to be held by the lender, an amount (in this subsection called the otherwise assessable amount) would have been included in the lender's assessable income of a year of income in respect of the distribution concerned;
the lender's assessable income of the year of income includes an amount equal to the otherwise assessable amount.
 (12) Where:
 (a) a taxpayer has entered into a transaction of a kind referred to in subparagraph (3)(a)(i); and
 (b) at the time of making an assessment in respect of income of the taxpayer of the year of income in which the transaction occurred, the Commissioner is of the opinion that, at a later time, circumstances will exist because of which this section will apply in connection with that transaction;
the Commissioner may apply the provisions of this section as if those circumstances existed at the time of making the assessment.
 (13) Where:
 (a) in the making of an assessment, this section has been applied on the basis that a circumstance that did not exist at the time of making the assessment would exist at a later time; and
 (b) after the making of the assessment, the Commissioner becomes satisfied that the circumstance will not exist;
then, in spite of anything in section 170, the Commissioner may amend the assessment at any time for the purpose of ensuring that this section is to be taken always to have applied on the basis that the circumstance did not exist.