Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:1_1:p5
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 5/20)
Character Range: 18799–21330

comparable market‑based rates or not reflecting value of tax preferred use of asset

 (6) Section 250‑30 does not apply if the *financial benefits that have been, or are to be provided, to you (or a *connected entity) by *members of the tax preferred sector in relation to the *tax preferred use of the asset:
 (a) are not provided on a regular periodic basis (and at least annually); or
 (b) are not based on comparable market‑based rates; or
 (c) do not reflect the value of the tax preferred use of the asset.

Special rules if tax preferred use is a lease or hire of the asset

 (7) If the *tax preferred use of the asset is a lease or hire of the asset (or the use of the asset under a lease or hire arrangement), section 250‑30 does not apply if:
 (a) the asset is so specialised that the *end user could not carry out one or more of its functions effectively without the asset; and
 (b) you would be unlikely to be able to re‑lease, re‑hire or resell the asset to another person who is not a *member of the tax preferred end user group.

Note: For particular arrangements that are treated as leases, see section 250‑80.

Special rules if tax preferred use is not a lease or hire of the asset

 (8) If the *tax preferred use of the asset is not the lease or hire of the asset (or the use of the asset under a lease or hire arrangement), section 250‑30 does not apply if:
 (a) a *member of the tax preferred sector has a right, if particular circumstances occur, to manage, or to assume control over, the asset (other than temporarily for the purpose of ensuring public health or safety, protecting the environment or continuing the supply of an essential service); or
 (b) the asset is so specialised that it is unlikely that it could effectively be put to any use other than the tax preferred use; or
 (c) neither you (nor a *connected entity) has effective day to day control and physical possession of the asset.

Note: For particular arrangements that are treated as leases, see section 250‑80.

250‑40  Fourth exclusion—sum of present values of financial benefits less than amount otherwise assessable

 (1) This Division does not apply to you and an asset that is being *put to a tax preferred use under a particular *arrangement if, when that *tax preferred use of the asset starts, the Division 250 assessable amount is less than the alternative assessable amount.

 (2) For the purposes of subsection (1), the Division 250 assessable amount is the sum of the present values of all the amounts that would be likely