Commonwealth Numbered Acts

INCOME TAX ASSESSMENT ACT 1997 No. 38 of 1997 - SECT 41.65

(1) If:

   (a)  a person incurs expenditure in connection with a transaction; and

   (b)  an amount is deductible in respect of the expenditure under the rules
        for the *capital allowance; and

   (c)  the parties to the transaction do not deal with each other at arm's
        length; and

   (d)  the amount of the expenditure is greater than the market value of what
        the expenditure is for; the amount of the expenditure is instead taken
        to be that market value.

(2) If:

   (a)  the parties to a transaction do not deal with each other at arm's
        length; and

   (b)  the transaction is a disposal of property; and

   (c)  the party disposing of the property has incurred capital expenditure
        in respect of the property that qualified for a deduction under the
        rules for the *capital allowance; and

   (d)  that party receives an amount under the transaction that is less than
        the market value of what that amount is for; that party is taken to
        have received that market value instead.

(3) In determining whether the parties dealt at arm's length, consider any
connection between them, as well as any other relevant circumstance.