BANKRUPTCY ACT 1966

PART VI - ADMINISTRATION OF PROPERTY  

Division 4B - Contribution by bankrupt and recovery of property  

Subdivision F - Assessments of income and contribution  

SECTION 139Y   TRUSTEE MAY REGARD BANKRUPT AS RECEIVING REASONABLE REMUNERATION  

139Y(1)   [Bankrupt is engaging etc in employment etc]  

If:


(a) the bankrupt is engaging or has engaged during a contribution assessment period in employment or other work or in activities that resemble employment or other work; and


(b) the bankrupt does not receive or did not receive any remuneration in respect of the employment, work or activities or receives or received remuneration that is less than the remuneration (in this subsection called the reasonable remuneration ) that:


(i) in the case of employment where an industrial instrument prescribes rates or minimum rates of salary or wages for the employment - might reasonably be expected to be or to have been received by the bankrupt in respect of the employment by virtue of the industrial instrument; or

(ii) in any other case - might reasonably be expected to be or to have been received by a person who engaged in similar employment, work or activities where there was no relationship or other connection between that person and the person for whom the employment, work or activities were carried out;

then, for the purpose of making an assessment, the trustee may determine that the bankrupt receives or received the reasonable remuneration in respect of the employment, work or activities.

139Y(2)   [Bankrupt enters etc into transaction etc]  

If:


(a) the bankrupt enters or entered during a contribution assessment period into any transaction that might reasonably be expected to produce or to have produced income; and


(b) the bankrupt does not derive or did not derive any income from the transaction or derives or derived income that is less than the income (in this subsection called the reasonable income ) that might reasonably be expected to be or to have been derived if the transaction were or had been entered into at arm ' s length;

then, for the purpose of making an assessment, the trustee may determine that the bankrupt derives or derived the reasonable income from the transaction.




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