RDRM33470 | Remittance Basis: Identifying Remittances: Condition D: Connected operation - disregard of certain remittances

There are some situations in which a relevant person’s enjoyment of property, service or an associated benefit is disregarded for the purposes of Condition D (section 809O(6) ITA 2007).

This applies where:

• the property of the person identified by Condition D, or the service, is enjoyed virtually to the entire exclusion of all relevant persons, so any enjoyment by a relevant person is incidental (section 8090(6)(a))

• enjoyment of a benefit by a relevant person is both negligible and the benefit is also enjoyed by non-relevant persons (section 809O(6)(aa))

• full consideration, in money or money’s worth, is given by a relevant person for the enjoyment (section 8090(6)(b)) - broadly, ‘full consideration’ in this context is the amount of consideration that would be expected to be paid in a similar transaction for the enjoyment, if it was a ‘bargain at arm’s length’

• the property or service is enjoyed by a relevant person in the same manner and on the same terms as it may be enjoyed by the general public or a section of the general public (section 809O(6)(c))