Document ID: chunk:federal_register_of_legislation:C2025C00029:section:1:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 1 (pt 2/35)
Character Range: 4064805–4067603

loan principal) equal to the consideration for the sale of the property less any amount paid, or credited by the *notional seller as having been paid, by the *notional buyer to the notional seller, at or before the start of the *arrangement, for the cost of the property.
Note: Section 240‑80 affects the amount of the notional loan principal where the arrangement is an extension or renewal of another arrangement.
 (4) The notional loan is subject to payment of interest.
 (5) The consideration for the sale of the property by the *notional seller, and the cost of the acquisition of the property by the *notional buyer, are each taken to have been:
 (a) if an amount is stated to be the cost or value of the property for the purposes of the *arrangement and the notional seller and the notional buyer were dealing with each other at *arm's length in connection with the arrangement—the amount so stated; or
 (b) otherwise—the amount that could reasonably have been expected to have been paid by the notional buyer for the purchase of the property if:
 (i) the notional seller had actually sold the property to the notional buyer at the start of the arrangement; and
 (ii) the notional seller and the notional buyer were dealing with each other at arm's length in connection with the sale.
 (6) The notional loan principal is taken to be repaid, and the interest is taken to be paid, by the making of the payments under the *arrangement.

Subdivision 240‑C—Amounts to be included in notional seller's assessable income

Guide to Subdivision 240‑C

240‑30  What this Subdivision is about

      This Subdivision provides for the inclusion in the notional seller's assessable income of:
         (a) amounts (notional interest) on account of the interest for the notional loan that the notional seller is taken to have made to the notional buyer; and
         (b) any profit made by the notional seller:

                (i) on the notional sale of the property to the notional buyer; or
                (ii) on a sale of the property after any notional re‑acquisition of the property by the notional seller.

Table of sections

Operative provisions
240‑35 Amounts to be included in notional seller's assessable income
240‑40 Arrangement payments not to be included in notional seller's assessable income

Operative provisions

240‑35  Amounts to be included in notional seller's assessable income

Notional interest
 (1) The *notional seller's assessable income of an income year includes the *notional interest for *arrangement payment periods, and parts of arrangement payment periods, in the income year.

Profit on notional sale
 (2) If the property is not *trading stock of the *notional seller and the consideration for the notional sale of the property exceeds the cost of the acquisition