Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_1:p13
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 13/52)
Character Range: 34440–37105

purposes of Subdivision 230‑B; and
 (b) the gain or loss is not an overall gain or loss from the arrangement (within the meaning of that Subdivision) at the time when you start to have the arrangement; and
 (c) the benefit or right referred to in paragraph (1)(a) or (b) is an amount that represents, or is a right to an amount that represents:
 (i) interest; or
 (ii) a *return paid or provided on a *debt interest; or
 (iii) something that is in the nature of interest; or
 (iv) something that could reasonably be regarded as being a substitute for interest; or
 (v) something prescribed by the regulations for the purposes of this paragraph.
Note 1: An example of something in the nature of interest is a discount on a security.
Note 2: An example of something that could reasonably be regarded as being a substitute for interest is a lump sum payment received instead of payments of interest.

230‑75  Apportionment when financial benefit provided or obligation ceases
 (1) Apply subsection (2) in working out whether you make, or will make, a gain or loss (and the amount of the gain or loss) at a time when:
 (a) you provide a particular *financial benefit under the *financial arrangement; or
 (b) one of your obligations under a financial arrangement *ceases.
The gain or loss is to be calculated in nominal (and not *present value) terms.
 (2) You must have regard to the extent to which the *financial benefits that you have received, or are to receive, under the *financial arrangement are reasonably attributable, at the time mentioned in subsection (1), to the benefit or obligation referred to in paragraph (1)(a) or (b).
 (3) Any attribution made under subsection (2) must reflect appropriate and commercially accepted valuation principles that properly take into account:
 (a) the nature of the rights and obligations under the *financial arrangement; and
 (b) the risks associated with each *financial benefit, right and obligation under the arrangement; and
 (c) the time value of money.
 (4) Despite subsection (2), no *financial benefit that you have received, or are to receive, under the *financial arrangement is to be attributed to the benefit or obligation referred to in paragraph (1)(a) or (b) if:
 (a) you are working out the amount of a gain or loss for the purposes of Subdivision 230‑B; and
 (b) the gain or loss is not an overall gain or loss from the arrangement (within the meaning of that Subdivision) at the time when you start to have the arrangement; and
 (c) the benefit or obligation referred to in paragraph (1)(a) or (b) is an amount that represents, or is an obligation to provide an amount that represents:
 (i) interest;