Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:1_2:p8
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 8/21)
Character Range: 73734–76566

250‑265 When balancing adjustment made
250‑270 Exception for subsidiary member leaving consolidated group
250‑275 Balancing adjustment

Other provisions

250‑280 Financial arrangement received or provided as consideration

Guide to Subdivision 250‑E

250‑190  What this Subdivision is about

      This Subdivision is about the tax treatment of gains and losses from the financial arrangement that you are taken to have under section 250‑155.
      You recognise gains and losses from the financial arrangement, as appropriate, over the life of the financial arrangement and ignore distinctions between income and capital. You use a compounding accruals method to recognise the gain or loss.
      A change in circumstances may cause a re‑estimation of gains and losses that the accruals method is being applied to.
      A balancing adjustment is made if you transfer particular rights or obligations or particular rights or obligations cease.

Application and objects of Subdivision

250‑195  Application of Subdivision

  This Subdivision applies for the purposes of working out the amount of the gain or loss that is to be included in your assessable income or allowed as a deduction in relation to the *financial arrangement that is taken to exist under section 250‑155.

250‑200  Objects of this Subdivision

  The objects of this Subdivision are:
 (a) to properly recognise gains and losses from the *financial arrangement by allocating them to appropriate periods of time; and
 (b) to minimise tax deferral.

Tax treatment of gains and losses from financial arrangements

250‑205  Gains are assessable and losses deductible

Gains

 (1) Your assessable income includes a gain you make from the *financial arrangement.

Losses

 (2) You can deduct a loss you make from the *financial arrangement, but only to the extent that:
 (a) you make it in gaining or producing your assessable income; or
 (b) you necessarily make it in carrying on a *business for the purpose of gaining or producing your assessable income.

250‑210  Gain or loss to be taken into account only once under this Act

Purpose of this section

 (1) The purpose of this section is to ensure that your gains that are assessable under this Subdivision, and your losses that are deductible under this Subdivision, are taken into account only once under this Act in working out your taxable income.

Gain or loss

 (2) If a gain or loss is, or is to be, included in your assessable income or allowable as a deduction to you for an income year under this Subdivision, the gain or loss is not to be (to any extent):
 (a) included in your assessable income; or
 (b) allowable as a deduction to you;
under any other provisions of this Act for the same or any other income year.

Associated financial benefits

 (3) If the amount or value of a *financial