INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 16G - Debt creation involving non-residents  

Subdivision A - Interpretation  

SECTION 159GZZB  

159GZZB   ACQUISITION OF ASSET NOT PREVIOUSLY IN EXISTENCE  
For the purposes of this Division, where a person or persons have acquired an asset (other than a debt) that did not previously exist:

(a) the asset shall be taken to have existed immediately before the acquisition and to have been acquired from the person or persons who created the asset; and

(b) if the asset is taken to have been acquired from more than one person - the respective interests of those persons in the asset immediately before the acquisition shall be taken to have been:

(i) if consideration was payable to those persons in respect of the acquisition and subparagraph (ii) does not apply - proportional to their entitlements to that consideration;

(ii) if consideration was payable to those persons in respect of the acquisition but the Commissioner considers that it is not appropriate for subparagraph (i) to apply - in such proportions as the Commissioner considers reasonable in the circumstances; or

(iii) in any other case - in such proportions as the Commissioner considers reasonable in the circumstances.