Document ID: chunk:federal_register_of_legislation:C2025C00029:section:8:p29
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 8 (pt 29/30)
Character Range: 4232146–4234958

is likely that paragraphs (1)(b) and (c) will not apply to that asset.
 (3) If this section applies, section 250‑145 applies to you and the asset only to the extent of the *disallowed capital allowance percentage.
 (4) Subject to subsection (6), the disallowed capital allowance percentage is the following ratio (expressed as a percentage):
 (5) The Commissioner may, before the due date for you to lodge your *income tax return for the income year to which the *arrangement period for the *tax preferred use of the asset starts, approve an alternative method for working out the *disallowed capital allowance percentage for you and the asset.
 (6) If the Commissioner approves an alternative method under subsection (5), the disallowed capital allowance percentage is the percentage worked out in accordance with that alternative method.

Subdivision 250‑D—Deemed loan treatment of financial benefits provided for tax preferred use

Table of sections
250‑155 Arrangement treated as loan
250‑160 Financial benefits that are subject to deemed loan treatment
250‑180 End value of asset
250‑185 Financial benefits subject to deemed loan treatment not assessed

250‑155  Arrangement treated as loan

Loan with characteristics provided for in this section taken to exist
 (1) If this Division applies to you and an asset at a particular time in an income year, a *financial arrangement in the form of a loan (with the characteristics provided for in this section) is taken to exist at that time for the purposes of working out your taxable income for that income year.
Note: See Subdivision 250‑E for the taxation treatment of the financial arrangement.

Lender
 (2) You are taken to be the lender in relation to the loan.

Amount lent and unpaid at the start of the arrangement period
 (3) The amount worked out under subsection (4) is taken to be the amount that you have lent, and that the borrower has not repaid, at the start of the *arrangement period.
 (4) The amount is worked out by taking:
 (a) the amount that, at the start of the *arrangement period, is:
 (i) the *adjustable value of the asset if subparagraph 250‑15(d)(i) applies; or
 (ii) the amount worked out under subsection (5) if subparagraph 250‑15(d)(ii) applies; or
 (b) if section 250‑150 applies—the amount that, at the start of the arrangement period, is the *disallowed capital allowance percentage of:
 (i) the adjustable value of the asset if subparagraph 250‑15(d)(i) applies; or
 (ii) the amount worked out under subsection (5) if subparagraph 250‑15(d)(ii) applies;
and deducting the sum of all *financial benefits that are *subject to deemed loan treatment and that have become due and payable before the start of the arrangement period.
 (5) If subparagraph 250‑15(d)(ii) applies, the amount worked out under this subsection for the