Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p17
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 17/43)
Character Range: 3987997–3990694

(1)(f) applies as if the reference in subparagraph (1)(f)(i) to the method used in your financial reports to work out the amounts of the gain or loss you make from the arrangement for each income year were a reference to the method that would be used in your financial reports to work out those amounts if the arrangement had not been an intra‑group transaction for the purposes of the standard referred to in subsection (3).
 (7) For the purposes of applying subparagraphs (1)(e)(ii) and (f)(ii) to a *financial arrangement, assume that you had made any election that:
 (a) you could make under Subdivision 230‑C or 230‑D; and
 (b) could apply to the arrangement.
 (8) If:
 (a) the *financial arrangement would not be a financial arrangement if the following provisions were disregarded:
 (i) Division 9A of Part III of the Income Tax Assessment Act 1936 (which deals with offshore banking units);
 (ii) Part IIIB of that Act (which deals with Australian branches of foreign banks etc.); and
 (b) paragraphs (1)(c) and (d) would be satisfied in relation to the financial arrangement if the arrangement had been between 2 separate entities; and
 (c) the *election to rely on financial reports is made by:
 (i) if section 121EB of the Income Tax Assessment Act 1936 applies—the OBU mentioned in that section (disregarding the operation of that section); or
 (ii) if section 160ZZW of that Act applies—the bank mentioned in that section (disregarding the operation of that section);
paragraphs (1)(c) and (d) are taken to be satisfied in relation to the arrangement.

230‑415  Financial arrangements not covered by election
 (1) An *election to rely on financial reports does not apply to a *financial arrangement if:
 (a) the arrangement is an *equity interest; and
 (b) you are the issuer of the equity interest.
 (2) An *election to rely on financial reports does not apply to a *financial arrangement if:
 (a) you are:
 (i) an individual; or
 (ii) an entity (other than an individual) that satisfies subsection 230‑455(2), (3) or (4) for the income year in which you start to have the arrangement; and
 (b) the arrangement is a *qualifying security; and
 (c) you have not made an election under subsection 230‑455(7).
 (3) An *election to rely on financial reports does not apply to a *financial arrangement if:
 (a) the election is made by the *head company of a *consolidated group or *MEC group; and
 (b) the election specifies that the election is not to apply to financial arrangements in relation to *life insurance business carried on by a member of the consolidated group or MEC group; and
 (c) the arrangement is one that relates to the life insurance business carried on by a member of