Commonwealth Numbered Acts

INCOME TAX ASSESSMENT ACT 1997 No. 38 of 1997 - SECT 330.560

(1) Common rule 2 (Non-arm's length transactions) applies as set out in this
section.

(2) Subsection 41- 65(1) applies only if:

   (a)  the transaction is a purchase of property (except a *mining, quarrying
        or prospecting right); or

   (b)  the expenditure qualifies for a deduction under Subdivision 330- I
        (which is about rehabilitating the site).

(3) If subsection 41- 65(1) applies, it has a wider operation in 2 ways.
First, it also operates if the amount of the expenditure is less than the
market value of what the expenditure is for. Second, if the amount of the
expenditure is greater than or less than that market value, the amount of the
expenditure is taken, for the purposes of applying this Act to both parties,
to be that market value.

(4) Subsection 41- 65(2) applies only if the transaction is a sale of property
(except a *mining, quarrying or prospecting right).

(5) If subsection 41- 65(2) applies, it has a wider operation in 3 ways.
First, it also operates if the seller receives an amount under the sale that
is greater than the market value of what the amount is for. Second, if the
amount the seller receives under the sale is greater than or less than that
market value, that amount is taken, for the purposes of applying this Act to
both parties, to be that market value. Third, it also operates if the seller
has incurred capital expenditure in respect of the property that qualified for
a deduction under Division 10, 10AAA or 10AA of the
Income Tax Assessment Act 1936.