Document ID: chunk:federal_register_of_legislation:C2004C01257:clause:2_1:p8
Version: federal_register_of_legislation:C2004C01257
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 8/20)
Character Range: 27642–30434

to have disposed of the car; and
 (ii) any amount that is included in the notional buyer's assessable income under section 40‑285 because the notional buyer is taken to have disposed of the car; or
 (b) the cost of the acquisition of the car by the associate.

Subdivision 240‑G—Adjustments if total amount assessed to notional seller differs from amount of finance charge

Guide to Subdivision 240‑G

240‑100  What this Subdivision is about

This Subdivision provides for adjustments if the sum of the amounts included in the notional seller's assessable income are greater or less than the finance charge, worked out at the end of the arrangement, for the notional loan.

Table of sections

Operative provisions

240‑105 Adjustments for notional seller
240‑110 Adjustments for notional buyer

[This is the end of the Guide]

Operative provisions

240‑105  Adjustments for notional seller

 (1) This section applies at the end of the *arrangement.

 (2) If the sum of:
 (a) all amounts (other than *termination amounts) that were paid or payable to the *notional seller under the *arrangement; and
 (b) any termination amounts paid or payable to the notional seller;
exceeds the amount worked out using the formula in subsection (4), the excess is included in the notional seller's assessable income of the income year in which the arrangement ends.

Note: Subsection 240‑80(5) provides that the amount of a notional loan that is taken to be made by an extended or renewed arrangement is a termination amount paid under the previous arrangement.

 (3) If the amount worked out using the formula in subsection (4) exceeds:
 (a) all amounts (other than *termination amounts) that were paid or payable to the *notional seller under the *arrangement; and
 (b) any termination amounts paid or payable to the notional seller;
the notional seller is entitled to deduct the excess in the income year in which the arrangement ends.

Note: Subsection 240‑80(5) provides that the amount of a notional loan that is taken to be made by an extended or renewed arrangement is a termination amount paid under the previous arrangement.

 (4) The formula for the purposes of subsections (2) and (3) is:
where:

assessed notional interest means the *notional interest that has been or is to be included in the *notional seller's assessable income of any income year.

240‑110  Adjustments for notional buyer

 (1) If:
 (a) an amount is included in the *notional seller's assessable income of an income year under subsection 240‑105(2); or
 (b) an amount would have been so included if the notional seller had been subject to tax on assessable income;
the *notional buyer is entitled to deduct a corresponding amount in the notional buyer's income year.

 (2) If:
 (a) the *notional seller is entitled to