Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-50 - CLIMATE CHANGE  

Division 420 - Registered emissions units  

Subdivision 420-B - Acquiring registered emissions units  

SECTION 420-20   Non-arm ' s length transactions and transactions with associates  

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.

420-20(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.

420-20(3)    

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