Document ID: chunk:federal_register_of_legislation:C2025C00029:section:14:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 14 (pt 11/19)
Character Range: 5527256–5529874

working out the net present value of an amount expected to be paid after that 30 June, treat the amount as having been paid on 1 January in the income year in which it is expected to be paid.
 (6) Reduce an amount worked out under subsection (2) or (3) to the extent (if any) to which that amount can reasonably be expected to be recouped.
 (7) In working out the net present value of an amount for the purposes of this section, use the yield on Australian Government Treasury Bonds with the maturity closest to 10 years (as published by the Reserve Bank of Australia).
 (8) For the purposes of subsection (2), if:
 (a) the *forestry manager of the scheme has paid or will pay an amount under the scheme in a transaction; and
 (b) the forestry manager and at least one other party to the transaction did not or will not deal at *arm's length in relation to the transaction; and
 (c) the amount is or will be more or less than the *market value of what it is for;
treat the amount as that market value.

394‑40  Payments under forestry managed investment scheme
  For the purposes of this Division, do not treat the following payments as payments under a *forestry managed investment scheme by a *participant in the scheme:
 (a) payments for *borrowing money;
 (b) payments of interest and payments in the nature of interest;
 (c) payments of stamp duty;
 (d) payments of *GST;
 (e) payments that relate to one or more of the matters mentioned in paragraphs 394‑45(4)(a), (b) or (c).

394‑45  Direct forestry expenditure
 (1) Direct forestry expenditure under a *forestry managed investment scheme means:
 (a) an amount paid under the scheme that is attributable to establishing, tending, felling and harvesting trees; and
 (b) notional amounts reflecting the *market value of goods, services or the use of land, provided by the *forestry manager of the scheme, for establishing, tending, felling and harvesting trees.
Example 1: Notional amounts reflecting the value of the use of land owned by the forestry manager that is provided for establishing, tending, felling and harvesting trees.
Example 2: Notional amounts reflecting the value of tree felling services provided by the forestry manager.
 (2) Treat *direct forestry expenditure covered by paragraph (1)(b) as paid annually for each income year of the *forestry manager of the scheme based on the *market value of the goods, services, or the use of the land. Treat the day on which it is paid as:
 (a) unless paragraph (b) or (c) applies—1 January in the income year; or
 (b) if the first time an amount is paid under the scheme is later than the first day of