(1) The * arrangement payments that the * notional seller receives, or is entitled to receive, under the * arrangement:
(a) are not to be included in the * notional seller's assessable income of any income year; but
(b) are not taken to be * exempt income of the notional seller.
(2) However, those * arrangement payments are taken into account in calculating * notional interest that is included in the * notional seller's assessable income under section 240- 35.
(3) A loss or outgoing incurred by the * notional seller in deriving any such * arrangement payments is not taken to be a loss or outgoing incurred by the notional seller in relation to gaining or producing * exempt income.
Guide to Subdivision 240-D