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Tax Administration Act 1994

Determinations

90AC: Determinations relating to financial arrangements

You could also call this:

"The Commissioner makes rules about money and investments."

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The Commissioner can make decisions about financial arrangements under the Income Tax Act 2007. You need to follow the financial arrangements rules in subpart EW of the Income Tax Act 2007. The Commissioner's decisions can be about how to apply certain methods, like the yield to maturity method or the straight line method. The Commissioner can decide things like how to determine income or expenditure for a financial arrangement. They can also decide which exchange rate to use and when. The Commissioner can make changes to their earlier decisions at any time. Some of the Commissioner's decisions are binding on people who are subject to the financial arrangements rules. This means you have to follow the Commissioner's decisions if they apply to you. The Commissioner can correct minor errors in their decisions without cancelling them.

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Topics:
Money and consumer rights > Taxes
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"Apply to the Commissioner for a Decision on a Financial Arrangement"

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90AD: Notification of determinations and notices, or

"When the Commissioner makes a decision, they must tell you about it if it affects you."

Part 5Determinations

90ACDeterminations relating to financial arrangements

  1. For the purpose of the financial arrangements rules in subpart EW of the Income Tax Act 2007, the Commissioner may determine the following:

  2. how the yield to maturity method applies to a financial arrangement or class of financial arrangements under section EW 16 of that Act:
    1. how the straight line method applies to a financial arrangement or class of financial arrangements under section EW 17 of that Act:
      1. the method that may be applied to determine the income derived or expenditure incurred for a financial arrangement or class of financial arrangements under section EW 15E(2)(d) or EW 15I(2)(c) of the Income Tax Act 2007:
        1. the market, the method, and the source of information, that a person may use to determine market value under section EW 18 of that Act:
          1. the method for determining the income derived or expenditure incurred for a financial arrangement or class of financial arrangements under section EW 20 of that Act:
            1. the alternative method that may be applied to determine the income derived or expenditure incurred for a financial arrangement or class of financial arrangements under either section EW 16(2) or EW 20(2) of that Act:
              1. whether a method meets the requirements of section EW 23(2) of that Act and may be treated as complying with the consistency requirement:
                1. whether or not a method may be changed under section EW 23(3) of that Act and the circumstances or conditions under which a change in method is allowed:
                  1. if an excepted financial arrangement is part of a financial arrangement, the method for determining the portion of the income, gain, loss, expenditure, consideration paid, or consideration received that is solely attributable to the excepted financial arrangement:
                    1. the method for determining the future value, discounted value, or a combination of both the future and discounted values of amounts paid or payable on the date the first right in the contracted property is transferred or services are provided under an agreement to which either section EW 32(5) or (6) of that Act applies:
                      1. the method for determining under sections FM 18 to FM 20 of that Act the consideration to be taken into account under section EW 31 of that Act in the case of a financial arrangement that is disposed of between members of the same consolidated group of companies:
                        1. the exchange rate that a taxpayer or a class of taxpayer may use, and the circumstances in which the rate may be used under section EW 34(4) of that Act, having regard to the costs that the taxpayer or class of taxpayer would incur in using a rate available under section EW 34(4)(a) or (b) of that Act.

                          1. The Commissioner may also determine the class of persons that may apply a determination.

                          2. A determination made under any of subsection (1)(a), (1)(d), (1)(h), (1)(i), or (1)(j) is binding on persons who are subject to the financial arrangements rules.

                          3. A determination is not made when the Commissioner accepts an alternative method to the yield to maturity method under section EW 16 of the Income Tax Act 2007 or an alternative method under section EW 20 of that Act.

                          4. For the purpose of subsection (1)(e), the Commissioner may specify or differentiate financial arrangements by reference to type, characteristics, the purpose for which the arrangements were entered into, or in any other way.

                          5. The Commissioner may at any time—

                          6. make a determination that varies, cancels, restricts or extends in scope an earlier determination under this section:
                            1. issue a notice that cancels a determination made under this section:
                              1. correct a typographical or minor error without cancelling the determination and making a new determination, provided that the correction does not change the meaning of the determination.

                                1. The following are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements), unless they relate only to 1 or more named persons:

                                2. a determination under subsection (1) or (6)(a):
                                  1. a notice under subsection (6)(b).

                                    Notes
                                    • Section 90AC: inserted, on (applying on and after 20 May 1999), by section 74(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
                                    • Section 90AC(1): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                    • Section 90AC(1): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 90AC(1)(a): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                    • Section 90AC(1)(a): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 90AC(1)(b): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                    • Section 90AC(1)(b): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 90AC(1)(bb): inserted (with effect on 1 April 2007), on , by section 227(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                    • Section 90AC(1)(bb): amended, on , by section 227(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                    • Section 90AC(1)(c): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                    • Section 90AC(1)(c): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 90AC(1)(d): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                    • Section 90AC(1)(d): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 90AC(1)(e): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                    • Section 90AC(1)(e): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 90AC(1)(f): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                    • Section 90AC(1)(f): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 90AC(1)(g): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                    • Section 90AC(1)(g): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 90AC(1)(h): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 90AC(1)(i): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                    • Section 90AC(1)(i): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 90AC(1)(j): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                    • Section 90AC(1)(j): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 90AC(1)(k): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                    • Section 90AC(1)(k): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 90AC(3): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 90AC(4): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                    • Section 90AC(4): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 90AC(6): replaced, on , by section 105 of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
                                    • Section 90AC(6)(b): amended, on , by section 135(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                                    • Section 90AC(6)(c): inserted, on , by section 135(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                                    • Section 90AC(7): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).