Document ID: chunk:federal_register_of_legislation:C2025C00029:section:1:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 1 (pt 6/35)
Character Range: 4075046–4077649

extended arrangement or renewed arrangement is a separate arrangement (the new arrangement).
 (3) There is not, however, taken to be any disposal or acquisition as a result of the original arrangement ending or of the new arrangement starting and the *notional buyer does not cease to own the property.
 (4) Also, the notional loan principal for the new loan is:
 (a) if the *arrangement as extended or renewed states an amount as the cost or value of the property for the purposes of the extension or renewal and the *notional seller and the *notional buyer were dealing with each other at *arm's length in connection with the extension or renewal—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 when the arrangement was extended or renewed; and
 (ii) the notional seller and notional buyer were dealing with each other at arm's length in connection with the sale.
 (5) Subdivision 240‑G applies to the notional loan for the original arrangement. For that purpose, the notional loan principal for the new arrangement is taken to be a *termination amount paid to the *notional seller under the original arrangement.

240‑85  What happens if an amount is paid by or on behalf of the notional buyer to acquire the property
  If, at or after the end of the *arrangement, an amount is paid to the *notional seller by, or on behalf of, the *notional buyer to acquire the property, the following provisions have effect:
 (a) the amount paid is not included in the notional seller's assessable income;
 (b) the notional buyer cannot deduct the payment;
 (c) the notional buyer is taken to continue to own the property;
 (d) the transfer to the notional buyer of legal title to the property is not taken to be a disposal of the property by the notional seller.

240‑90  What happens if the notional buyer ceases to have the right to use the property
 (1) This section applies if, at the end of the *arrangement:
 (a) the arrangement is not extended or renewed in the way mentioned in subsection 240‑80(1); and
 (b) no amount is paid to the *notional seller by, or on behalf of, the *notional buyer to acquire the property; and
 (c) the property is not lost or destroyed.
 (2) The property is taken to have been disposed of by the *notional buyer by way of sale back to the *notional seller, and to have been acquired by the *notional seller, at the end of the *arrangement.
 (3) The consideration for the sale of