23When does an entity get a charge benefit from a scheme?

23 When does an entity get a charge benefit from a scheme?

(1) An entity gets a charge benefit from a scheme if (were this Part to be disregarded):

(a) an amount of charge payable by the parent entity of the entity’s service group is, or could reasonably be expected to be, smaller than it would be apart from the scheme or a part of the scheme; or

(b) an amount of charge offset to which the parent entity of the entity’s service group is entitled is, or could reasonably be expected to be, larger than it would be apart from the scheme or a part of the scheme.

Meaning of scheme

(2) A scheme is:

(a) any arrangement, agreement, understanding, promise or undertaking:

(i) whether it is express or implied; and

(ii) whether or not it is, or is intended to be, enforceable by legal proceedings; or

(b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.

Charge benefit can arise even if no economic alternative

(3) An entity can get a charge benefit from a scheme even if the entity or entities that entered into or carried out the scheme, or a part of the scheme, could not have engaged economically in any activities:

(a) of the kind to which this Act applies; and

(b) that would produce an effect equivalent (except in terms of this Act) to the effect of the scheme or part of the scheme;

other than the activities involved in entering into or carrying out the scheme or part of the scheme.