Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 420.20

  (1)   If:

  (a)   an entity becomes the * holder of a * registered emissions unit; and

  (b)   either:

  (i)   the entity and the previous holder of the unit did not deal with each other at * arm's length; or

  (ii)   the previous holder is the entity's * associate; and

  (c)   the entity did not pay or give consideration equal to the * market value of the unit for becoming the holder of the unit;

the entity is treated as if:

  (d)   the entity had incurred expenditure in becoming the holder of the unit; and

  (e)   the amount of the expenditure were equal to that market value.

  (2)   This section does not apply if a * registered emissions unit * held by an individual just before the individual's death:

  (a)   devolves to the individual's * legal personal representative; or

  (b)   * passes to a beneficiary in the individual's estate.

  (3)   This section does not apply to the issue of an * Australian carbon credit unit under the Carbon Credits (Carbon Farming Initiative) Act 2011 .