Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 104 - CGT events  

Subdivision 104-K - Other CGT events  

SECTION 104-205   Incoming international transfer of emissions unit: CGT event K1  

104-205(1)  
CGT event K1 happens if:

(a) any of the following conditions is satisfied:

(i) - (ii) (Repealed by No 83 of 2014)

(iii) a *Kyoto unit is transferred from your foreign account (within the meaning of the Australian National Registry of Emissions Units Act 2011 ) to your Registry account (within the meaning of that Act) or your nominee ' s Registry account (within the meaning of that Act);

(iv) a Kyoto unit is transferred from your nominee ' s foreign account (within the meaning of the Australian National Registry of Emissions Units Act 2011 ) to your Registry account (within the meaning of that Act) or your nominee ' s Registry account (within the meaning of that Act);

(v) an *Australian carbon credit unit is transferred from your foreign account (within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011 ) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011 ) or your nominee ' s Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011 );

(vi) an *Australian carbon credit unit is transferred from your nominee ' s foreign account (within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011 ) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011 ) or your nominee ' s Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011 ); and

(b) as a result of the transfer, you start to *hold the unit as a *registered emissions unit; and

(c) just before the transfer, the unit was neither your *trading stock nor your *revenue asset.

104-205(2)  
The time of the event is when you start to *hold the unit as a *registered emissions unit.

104-205(3)  
You make a capital gain if the unit ' s *market value (just before you started to *hold the unit as a *registered emissions unit) is more than its *cost base. You make a capital loss if that market value is less than its *reduced cost base.