Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:1_2:p2
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 2/21)
Character Range: 58735–61376

thing; and
 (h) in applying sections 250‑265 to 250‑275:
 (i) the amount that you are taken, under subsections (3), (4) and (5), to have lent are the only financial benefits that you provide under the loan; and
 (ii) the financial benefits you have received under the loan are taken to include financial benefits that are subject to deemed loan treatment that a person is, at the end of the arrangement period, liable to provide to you.

 (9) If, under subsection 250‑160(2), a particular percentage of a reasonable estimate of the *end value of the asset was taken to be a *financial benefit that is *subject to the deemed loan treatment, subsection 250‑275(1) applies to the loan at the end of the *arrangement period as if you had received under the loan a financial benefit equal to the relevant percentage of the end value of the asset.

250‑160  Financial benefits that are subject to deemed loan treatment

General rule

 (1) Subject to subsections (3) and (4), a *financial benefit is subject to deemed loan treatment if:
 (a) the financial benefit:
 (i) has been; or
 (ii) will, assuming normal operating conditions, be; or
 (iii) can, assuming normal operating conditions, reasonably be expected to be;
  provided to you (or a *connected entity); and
 (b) the financial benefit has been, will be or can reasonably be expected to be *provided directly or indirectly by a *member of the tax preferred sector in relation to the *tax preferred use of the asset; and
 (c) the right to receive, or the obligation to provide, the financial benefit is *cash settlable; and
 (d) the financial benefit has not been, will not be or can be expected not to be provided by one of your connected entities.

Note: Paragraph (d) stops a financial benefit passing between you and any of your connected entities from being counted twice.

End value also taken to be financial benefit subject to deemed loan treatment

 (2) The relevant percentage of a reasonable estimate of the *end value of the asset is also taken to be a *financial benefit that is subject to deemed loan treatment if:
 (a) the asset is not to be purchased or acquired by, or transferred to, a *member of the tax preferred sector at the end of the *arrangement period under a legally enforceable *arrangement; or
 (b) the asset:
 (i) is, or is to become, a *privatised asset; or
 (ii) would be, or would become, a privatised asset if it were a *depreciating asset; or
 (iii) would be a privatised asset if the asset were a depreciating asset and paragraphs 58‑5(2)(a) and 58‑5(4)(a) were not limited to acquisitions of depreciating assets that occurred on or after 1 July 2001.