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INCOME TAX ASSESSMENT ACT 1997 - SECT 974.25

Exceptions to the debt test

Short term schemes

             (1)  A * scheme does not satisfy the debt test in subsection 974-20(1) in relation to an entity if:

                     (a)  at least a substantial part of a * financial benefit mentioned in that subsection does not consist of either of the following or a combination of either of the following:

                              (i)  a liquid or monetary asset;

                             (ii)  an amount of money; and

                     (b)  the scheme requires the financial benefit mentioned in paragraph 974-20(1)(c) to be provided within a period of no more than 100 days of the receipt of the first financial benefit mentioned in paragraph 974-20(1)(b); and

                     (c)  the financial benefit mentioned in paragraph 974-20(1)(c):

                              (i)  is in fact provided within that period; or

                             (ii)  is not provided within that period because the entity required to provide the benefit neglects to provide the benefit within that period (although willing to do so); or

                            (iii)  is not provided within that period because the entity required to provide the benefit is unable to provide the benefit within that period (although willing to do so); and

                     (d)  the scheme is not one of a number of * related schemes that together are taken to give rise to a * debt interest under subsection 974-15(2).

Regulations

             (2)  The regulations may make provision in relation to the application or operation of subsection (1). Without limiting this, the regulations may:

                     (a)  specify what constitutes a substantial part of a * financial benefit for the purposes of paragraph (1)(a); or

                     (b)  specify a period to be substituted for the period referred to in paragraph (1)(b).



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