Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 4/33)
Character Range: 4685647–4688309

or expenditure of an amount; and
 (ii) the amount is less than the amount of a loss, outgoing or expenditure that the entity might have been expected to incur if those parties had been dealing with each other at arm's length in relation to the scheme;
an amount of the entity's ordinary income and statutory income equal to twice the difference between the amount that the entity did incur and the amount that the entity might have been expected to incur is non‑arm's length income of the entity.
 (9) If:
 (a) a *complying superannuation entity is of a kind referred to in paragraph (8)(a) (about certain small entities); and
 (b) as a result of a *scheme the parties to which were not dealing with each other at *arm's length in relation to the scheme, in gaining or producing the *ordinary income and *statutory income of the entity (but not in gaining or producing income in relation to any particular asset or assets of the entity), the entity does not incur a loss, outgoing or expenditure that the entity might have been expected to incur if those parties had been dealing with each other at arm's length in relation to the scheme;
an amount of the entity's ordinary income and statutory income equal to twice the amount that the entity might have been expected to incur is non‑arm's length income of the entity.

295‑555  Components of taxable income—RSA providers
 (1) The taxable income of an *RSA provider is split into:
 (a) an *RSA component; and
 (c) a *standard component.
Note: The RSA component is taxed at the same concessional rate that applies to the low tax component of complying superannuation entities (see section 23 of the Income Tax Rates Act 1986). The standard component is taxed at the standard company rate.
 (2) The RSA component for an income year is worked out in this way:

      Method statement
           Step 1. Add these amounts included in the provider's assessable income for the income year:

                (a) amounts included under Subdivision 295‑C; and
                (b) other amounts credited during the year to *RSAs that it provides.

           Step 2. Subtract from the step 1 amount amounts paid from those *RSAs (except benefits for the RSA holders or tax).
           Step 3. The result is the RSA component.
 (3) However, if the *RSA component is more than the *RSA provider's taxable income:
 (a) the provider's taxable income is equal to that sum; and
 (b) this Act applies to the provider as if it had a *tax loss for the income year of an amount that would have been that loss if the RSA component were not *ordinary income or *statutory income.
 (4) The standard component is the remaining part