Document ID: chunk:federal_register_of_legislation:C2025C00014:section:26aj:p4
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 26AJ (pt 4/6)
Character Range: 229652–232126

to the amount by which the interest (in this subsection called the accrued interest) that has accrued on the principal loan in respect of that period exceeds the amount (if any) paid in respect of the accrued interest before the end of that period; and
 (c) if any part of the accrued interest becomes payable or is paid after the time when the deemed loan is taken to have been made, the deemed loan is to be reduced accordingly; and
 (d) the deemed loan is taken to have been made at a nil rate of interest.
 (6) For the purposes of this section, if no interest is payable in respect of a loan, a nil rate of interest is taken to be payable in respect of the loan.
 (7) For the purposes of this section, a person is taken to be under an obligation to pay or repay an amount even though the amount is not due for payment or repayment.
 (8) For the purposes of this section, if a person does anything that results in the creation of property in another person, the first‑mentioned person is taken to have provided that property to the other person at the time when the property comes into existence.
 (9) For the purposes of this section, if:
 (a) a particular mode of application of money by a taxpayer in relation to another person (in this subsection called the investment body) would not, apart from this subsection, be an investment; and
 (b) a chance to participate in:
 (i) betting (including pool betting); or
 (ii) a lottery or other form of gambling; or
 (iii) a game with prizes;
  is provided to the taxpayer or a third person:
 (iv) wholly or partly in respect of the mode of application of money by the taxpayer; or
 (v) wholly or partly in relation directly or indirectly to the mode of application of money by the taxpayer; and
 (c) if a cash payment had been provided by the investment body to the taxpayer instead of that chance, the payment would constitute, to any extent, a return on an investment held by the taxpayer in or with the investment body;
the mode of application of money is taken to be an investment held by the taxpayer with the investment body.
 (10) If a ballot is held to determine the order in which loans are to be made by a Starr‑Bowkett building society to its members, then the making of a loan in accordance with the ballot is not covered by paragraph (1)(b).
 (11) In this section:
arm's length value, in relation to property or services, means:
 (a) the amount that the recipient could reasonably have been expected to have been