Document ID: chunk:federal_register_of_legislation:C2004C01257:clause:2_1:p2
Version: federal_register_of_legislation:C2004C01257
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 2/20)
Character Range: 12734–15478

(3) The notional loan is of an amount (the notional loan principal) equal to the consideration for the sale of the property less any amount paid, or credited by the *notional seller as having been paid, by the *notional buyer to the notional seller, at or before the start of the *arrangement, for the cost of the property.

Note: Section 240‑80 affects the amount of the notional loan principal where the arrangement is an extension or renewal of another arrangement.

 (4) The notional loan is subject to payment of a charge (the finance charge).

 (5) The consideration for the sale of the property by the *notional seller, and the cost of the acquisition of the property by the *notional buyer, are each taken to have been:
 (a) if an amount is stated to be the cost or value of the property for the purposes of the *arrangement and the notional seller and the notional buyer were dealing with each other at *arm's length in connection with the arrangement—the amount so stated; or
 (b) otherwise—the amount that could reasonably have been expected to have been paid by the notional buyer for the purchase of the property if:
 (i) the notional seller had actually sold the property to the notional buyer at the start of the arrangement; and
 (ii) the notional seller and the notional buyer were dealing with each other at arm's length in connection with the sale.

 (6) The *notional loan principal is taken to be repaid, and the *finance charge is taken to be paid, by the making of the payments under the *arrangement.

Subdivision 240‑C—Amounts to be included in notional seller's assessable income

Guide to Subdivision 240‑C

240‑30  What this Subdivision is about

This Subdivision provides for the inclusion in the notional seller's assessable income of:

(a) amounts (notional interest) on account of the finance charge for the notional loan that the notional seller is taken to have made to the notional buyer; and

(b) any profit made by the notional seller:

 (i) on the notional sale of the property to the notional buyer; or

 (ii) on a sale of the property after any notional re‑acquisition of the property by the notional seller.

Table of sections

Operative provisions

240‑35 Amounts to be included in notional seller's assessable income
240‑40 Arrangement payments not to be included in notional seller's assessable income

[This is the end of the Guide]

Operative provisions

240‑35  Amounts to be included in notional seller's assessable income

Notional interest

 (1) The *notional seller's assessable income of an income year includes the *notional interest for *arrangement payment periods, and parts of arrangement payment periods, in the income year.

Profit on notional sale

 (2) If the property is