Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-50 - CLIMATE CHANGE  

Division 420 - Registered emissions units  

Subdivision 420-C - Disposing of registered emissions units etc.  

SECTION 420-41   420-41   Ceasing to be taxable in Australia on the proceeds of sale of registered emissions units  


If:


(a) you start to *hold a *registered emissions unit; and


(b) assuming that you had sold the unit to someone else immediately after you started to hold the unit, the proceeds of sale would have been included in your assessable income under section 420-25 ; and


(c) you hold the unit until a later time (the taxable status cessation time ), where the following conditions are satisfied:


(i) assuming that you had sold the unit to someone else immediately before the taxable status cessation time, the proceeds of the sale would have been included in your assessable income under section 420-25 ;

(ii) assuming that you had sold the unit to someone else at the taxable status cessation time, the proceeds of sale would not have been included in your assessable income under section 420-25 ;

you are treated as if:


(d) just before the taxable status cessation time, you had sold the unit to someone else for its *market value; and


(e) you had, at the taxable status cessation time, bought it back for the same amount.

Note:

Under the International Tax Agreements Act 1953 , for some foreign residents, the proceeds of the sale of a registered emissions unit are not assessable income in Australia.


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