Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 974.25

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).