Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 247.30

  (1)   If the * capital protection under a * capital protected borrowing is invoked:

  (a)   the borrower is taken to have exercised the put option; and

  (b)   any interest in a * share, unit in a unit trust or stapled security that is acquired by the lender or another entity under the * arrangement as a result of that capital protection being invoked is taken to have been disposed of by the borrower as a result of the exercise of the option.

  (2)   If the * capital protection under a * capital protected borrowing is not invoked on or before the last occasion on which it could have been, the put option is taken to have expired.

Note:   If a borrower under a capital protected borrowing holds the protected things on capital account, the exercise or expiry of the put option may give rise to a capital gain or capital loss: see sections   104 - 25 (CGT event C2) and 134 - 1 (exercise of options).

Table of Subdivisions

  Guide to Division   250

250 - A   Objects

250 - B   When this Division applies to you and an asset

250 - C   Denial of, or reduction in, capital allowance deductions

250 - D   Deemed loan treatment of financial benefits provided for tax preferred use

250 - E   Taxation of deemed loan

250 - F   Treatment of asset when Division ceases to apply to the asset

250 - G   Objections against determinations and decisions by the Commissioner