Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 420.22

    If:

  (a)   you start to * hold a * registered emissions unit at a particular time; and

  (b)   assuming that you had sold the unit to someone else immediately after you started to hold the unit, the proceeds of the sale would not have been included in your assessable income under section   420 - 25; and

  (c)   you hold the unit until a later time (the taxable status commencement time ), where the following conditions are satisfied:

  (i)   assuming that you had sold the unit to someone else immediately before the taxable status commencement time, the proceeds of the sale would not have been included in your assessable income under section   420 - 25;

  (ii)   assuming that you had sold the unit to someone else at the taxable status commencement time, the proceeds of the sale would have been included in your assessable income under section   420 - 25;

you are treated as if:

  (d)   immediately after the taxable status commencement time, you had bought the unit from someone else for its * market value; and

  (e)   you had started to hold the unit immediately after the taxable status commencement time instead of at the time mentioned in paragraph   (a).

Note:   Under the International Tax Agreements Act 1953 , for some foreign residents, the proceeds of the sale of a registered emissions unit are not assessable income in Australia.

Table of sections

420 - 25   Assessable income on disposal of registered emissions units

420 - 30   Non - arm's length transactions and transactions with associates

420 - 35   Outgoing international transfers of emissions units

420 - 40   Disposal of registered emissions units for a purpose other than gaining assessable income

420 - 41   Ceasing to be taxable in Australia on the proceeds of sale of registered emissions units

420 - 42   Deduction for expenses incurred in ceasing to hold a registered emissions unit