Document ID: chunk:federal_register_of_legislation:C2025C00014:section:159gp:p3
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 159GP (pt 3/5)
Character Range: 1418459–1421087

with a bank or other financial institution;
 (c) a secured or unsecured loan; or
 (d) any other contract, whether or not in writing, under which a person is liable to pay an amount or amounts, whether or not the liability is secured.
taxpayer's maximum term, in relation to a security held by a taxpayer, means:
 (a) if the security was issued to the taxpayer—the term of the security; or
 (b) if the security was transferred to the taxpayer—the part of the term remaining after the transfer.
term, in relation to a security, means the period from the issue of the security until the time at which the liability to make the payment or final payment or payments, as the case requires, under the security arises.
transfer, in relation to a security, means transfer, sell, assign or dispose in any way of the security or of the right to receive payment of the amount or amounts payable under the security, but does not include a redemption or partial redemption of the security.
transfer price, in relation to the transfer of a security, means the consideration (if any) for the transfer of the security.
variable return security means a qualifying security that is not a fixed return security.
 (2) Where:
 (a) the Commissioner, having regard to any connection between the parties to the issue or transfer of a security and to any other relevant circumstances, is satisfied that the parties were not dealing with each other at arm's length in relation to the issue or transfer; and
 (b) the Commissioner determines that this subsection should apply in relation to the issue or transfer;
then, for the purposes of the application of the definition of issue price or transfer price, as the case may be, in subsection (1) in relation to the issue or transfer, the consideration for the issue or transfer shall be taken to be equal to:
 (c) the consideration that might reasonably be expected for the issue or transfer if the parties to the issue or transfer were independent parties dealing at arm's length with each other in relation to the issue or transfer; or
 (d) where, for any reason (including an insufficiency of information available to the Commissioner), it is not possible or not practicable for the Commissioner to ascertain the amount referred to in paragraph (c)—such amount as the Commissioner determines.
 (3) For the purposes of this Division, there shall be taken to be an eligible return in relation to a security if at the time when the security is issued it is reasonably likely, by reason that the security was issued at a discount, bears deferred interest or is capital indexed or for any other reason, having