Document ID: chunk:federal_register_of_legislation:C2004C01257:clause:2_1:p6
Version: federal_register_of_legislation:C2004C01257
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 6/20)
Character Range: 22912–25615

to have ended if the property has been lost or destroyed.

240‑78  Termination amounts

  A termination amount is an amount payable because an *arrangement ends and includes:
 (a) if, at the end of the arrangement, the *notional buyer acquires the property from the *notional seller—an amount payable to the notional seller for the acquisition; or
 (b) if, at the end of the arrangement, the property is lost or destroyed—any amounts paid to the notional seller (whether by the notional buyer or another entity) as a result of the loss or destruction of the property; or
 (c) otherwise—the value of the property at the end of the arrangement.

240‑80  What happens if the arrangement is extended or renewed

 (1) This section sets out what happens if, after the end of the *arrangement, the *notional buyer and *notional seller extend or renew the *arrangement.

 (2) This Division applies as if the original *arrangement has ended and the 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