INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10A - Timber operations and timber mill buildings  

Subdivision C - General provisions  

SECTION 124JE  

124JE   TRANSACTIONS BETWEEN PERSONS NOT AT ARM'S LENGTH  
If:

(a) a person has purchased from another person a unit of property where:

(i) the vendor had incurred capital expenditure of a kind in respect of which deductions are or have been allowable under this Division; or

(ii) the expenditure of the purchaser in acquiring the unit of property is capital expenditure of a kind in respect of which deductions are or have been allowable under this Division; and

(b) it would be concluded that, having regard to any connection between the vendor and the purchaser or to any other relevant circumstances, those persons were not dealing with each other at arm's length; and

(c) the purchase price is greater or lesser than the market value of the unit at the time of the purchase;

the purchase price is, for all purposes of the application of this Act in relation to the vendor or the purchaser, taken to have been the amount of the market value of the unit at the time of the purchase.