Section EW 1 — Income Tax Act 2007: What this subpart does

EW 1 What this subpart does Financial arrangements rules (1) This subpart contains most of the financial arrangements rules. Meaning of financial arrangements rules (2) Financial arrangements rules means— (a) the sections in this subpart; and (b) sections CC 3 (Financial arrangements), DB 11 to DB 15 (which relate to financial arrangements adjustments), EZ 51 (Transitional adjustment when changing to financial arrangements rules), FB 9 (Financial arrangements rules), GB 21 (Dealing that defeats intention of financial arrangements rules), RA 11 and RA 12 (which relate to adjustments to correct errors); and (c) sections 90AA to 90AD of the Tax Administration Act 1994. Purposes of financial arrangements rules (3) The purposes of the financial arrangements rules are— (a) to require the parties to a financial arrangement to accrue over the term of the arrangement a fair and reasonable amount of income derived or expenditure incurred under the arrangement, and so to prevent the deferral of income or the advancement of expenditure; and (b) to require the parties to a financial arrangement to disregard any distinction between capital and revenue amounts; and (c) to require a party to a financial arrangement to calculate a base price adjustment when the rights and obligations of the party under the arrangement cease. Defined in this Act: amount , financial arrangement , financial arrangements rules , income , Compare: 2004 No 35 s EW 1