2323.This section disapplies certain tax consequences of a type 2 finance arrangement if certain conditions are met. It is based on sections 774D(1) to (4) and 774G(2) of ICTA.
2324.Under subsections (1) and (2), if – but for this section – a relevant change in relation to the partnership would have the “relevant effect”, then it does not.
2325.Subsection (3) defines the “relevant effect”. It specifies three alternative effects.
Introduction Overview Overview Section 765: Certain tax consequences not to have effect