(1) A right, or the amount of a return, is contingent on aspects of the economic performance of an entity, or a part of the entity's activities, if the right or return is contingent on the economic performance of that entity, or that part of those activities, but not solely because of one of the following:
(a) the ability or willingness of an entity to meet the obligation to satisfy the right to the return;
(b) the receipts or turnover of the entity or the turnover generated by those activities.
(2) The regulations may specify circumstances in which a right or return is to be taken to be contingent, or not contingent, on aspects of the economic performance of an entity or a part of an entity's activities.
(3) The regulations may provide that paragraph (1)(b) does not apply in the circumstances specified in the regulations.
(4) The regulations may provide that an interest that:
(a) is covered by item 2 in the table in subsection 974-75(1) or paragraph 974-80(2)(a); and
(b) arises in the circumstances specified in the regulations;
is not an equity interest because of:
(c) the limited extent to which the right or return that the interest carries is * contingent on aspects of the economic performance of an entity or a part of the entity's activities; or
(d) the practical insignificance of the right or return that the interest carries being contingent on that performance.