Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:1_1:p20
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 20/20)
Character Range: 54434–56163

characteristics provided for in this section taken to exist

 (1) If this Division applies to you and an asset at a particular time in an income year, a *financial arrangement in the form of a loan (with the characteristics provided for in this section) is taken to exist at that time for the purposes of working out your taxable income for that income year.

Note: See Subdivision 250‑E for the taxation treatment of the financial arrangement.

Lender

 (2) You are taken to be the lender in relation to the loan.

Amount lent and unpaid at the start of the arrangement period

 (3) The amount worked out under subsection (4) is taken to be the amount that you have lent, and that the borrower has not repaid, at the start of the *arrangement period.

 (4) The amount is worked out by taking:
 (a) the amount that, at the start of the *arrangement period, is:
 (i) the *adjustable value of the asset if subparagraph 250‑15(d)(i) applies; or
 (ii) the amount worked out under subsection (5) if subparagraph 250‑15(d)(ii) applies; or
 (b) if section 250‑150 applies—the amount that, at the start of the arrangement period, is the *disallowed capital allowance percentage of:
 (i) the adjustable value of the asset if subparagraph 250‑15(d)(i) applies; or
 (ii) the amount worked out under subsection (5) if subparagraph 250‑15(d)(ii) applies;
and deducting the sum of all *financial benefits that are *subject to deemed loan treatment and that have become due and payable before the start of the arrangement period.

 (5) If subparagraph 250‑15(d)(ii) applies, the amount worked out under this subsection for the purposes of subsection (4) is:

Item  If the expenditure referred to in that subparagraph is ...  the amount is ...