A New Tax System (Indirect Tax and Consequential Amendments) Act 1999 (176 of 1999)

Schedule 3   Income Tax Assessment Act 1997

Part 1   General

63   Subsection 995-1(1) (definition of market value )

Repeal the definition, substitute:

market value :

(a) The market value of an asset (other than an asset the *supply of which cannot be a *taxable supply) at a particular time is that market value reduced by an amount equal to the amount of the *input tax credit (if any) to which you would be entitled if:

(i) you had *acquired the asset at that time; and

(ii) the acquisition had been solely for a *creditable purpose; and

Note: Some assets, such as shares, cannot be the subject of a taxable supply.

(b) without limiting paragraph (a), in working out the market value of a *non-cash benefit, disregard anything that would prevent or restrict conversion of the benefit to money.