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 .

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