Document ID: chunk:federal_register_of_legislation:C2019A00095:clause:1_4:p2
Version: federal_register_of_legislation:C2019A00095
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 2/2)
Character Range: 9573–11045

(4) For the purposes of subsections (2) and (3), the amount is the difference between:
 (a) the amount that the transition taxpayer would need to receive or pay under the financial arrangement without an amount being assessable income of, or deductible to, the transition taxpayer if the subject asset, or the corresponding liability for the subject asset, were disposed of at the time the balancing adjustment is made; and
 (b) the amount that the transition taxpayer would need to receive or pay under the financial arrangement without an amount being assessable income of, or deductible to, the transition taxpayer if:
 (i) the subject asset, or the corresponding liability for the subject asset, were disposed of at the time the balancing adjustment is made; and
 (ii) the assumptions in subsection (5) were made.
 (5) The assumptions referred to in subparagraph (4)(b)(ii) are that, when the financial arrangement was entered into:
 (a) the parties to the arrangement were dealing with each other at arm's length (within the meaning of the Income Tax Assessment Act 1997) in relation to the arrangement; and
 (b) if the arrangement gives rise to an interest that is not an equity interest in an entity—the return on the interest would reasonably be expected to be equal to the benchmark rate of return (within the meaning of the Income Tax Assessment Act 1997) for the interest.
 (6) This section applies despite section 230‑510 of the Income Tax Assessment Act 1997.