Document ID: chunk:federal_register_of_legislation:C2025C00029:section:1:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 1 (pt 9/35)
Character Range: 4082331–4085093

of the Income Tax Assessment Act 1936 applies in relation to an arrangement (the assignment arrangement) between the notional seller and another person (the holder) to transfer the right to payments (the Division 240 payments) under an arrangement that is treated as a sale and loan by this Division (the sale and loan arrangement).
 (2) In applying Division 16E, the following assumptions are to be made:
 (a) the assignment arrangement is the qualifying security;
 (b) the notional seller is the issuer;
 (c) the qualifying security is issued when the assignment arrangement is entered into;
 (d) the issue price is consideration provided to the notional seller under the assignment arrangement;
 (e) the Division 240 payments are payments made by the notional seller under the assignment arrangement;
 (f) no part of the payments represent periodic interest.
 (3) This Subdivision does not apply if the assignment arrangement gives rise to a termination of the sale and loan arrangement for the purposes of this Division.
 (4) To avoid doubt, Division 6A of Part III of the Income Tax Assessment Act 1936 does not apply to an assignment arrangement to which this Subdivision applies.

Subdivision 240‑I—Provisions applying to hire purchase agreements

Table of sections

Operative provisions
240‑115 Another person, or no person taken to own property in certain cases

Operative provisions

240‑115  Another person, or no person taken to own property in certain cases
 (1) This section sets out special modifications of the effect of this Division that apply in relation to a *hire purchase agreement unless:
 (a) the notional buyer would have been the owner or the *quasi‑owner of the property if the *arrangement had been a sale of the property; and
 (b) it is reasonably likely that the right, obligation or contingent obligation to acquire the property will be exercised by, or in respect of, the notional buyer.
Note: An example of a contingent obligation is a put option.
 (2) The modifications also apply if the *notional buyer:
 (a) disposes of his or her interest in the property; or
 (b) enters into a lease covered by Division 242 (about luxury car leases) under which he or she leases the property to another person.

Modifications
 (3) For the purpose of the *capital allowance provisions, if, apart from the operation of this Division, an entity other than the *notional seller would own the property that is the subject of an agreement covered by this section, that entity is taken to be the owner of the property.
 (4) For the purpose of the *capital allowance provisions, if, apart from the operation of this Division, the *notional seller would own the property that is the subject of an agreement covered by this section, no entity is taken