Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 250.135

Level of expected financial benefits test

Effective guarantee or indemnity for value of asset

             (1)  You lack a predominant economic interest in an asset at a particular time if the asset has a * guaranteed residual value at that time.

Likely financial benefits exceeding 70% limit

             (2)  You also lack a predominant economic interest in an asset at a particular time if, at that time:

                     (a)  the * arrangement under which the asset is * put to the tax preferred use (either alone or together with any other arrangement in relation to the * tax preferred use of the asset or the * provision of * financial benefits in relation to the tax preferred use of the asset) is a * debt interest; or

                     (b)  the sum of the present values of the * expected financial benefits that * members of the tax preferred sector have provided, or are or are reasonably likely to provide, to you (or a * connected entity) in relation to the tax preferred use of the asset exceeds 70% of:

                              (i)  the * market value of the asset if subparagraph 250-15(d)(i) applies; or

                             (ii)  so much of the market value of the asset as is attributable to the expenditure referred to subparagraph 250-15(d)(ii) if that subparagraph applies.



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