INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 (ARCHIVE)

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 387 - Capital allowances for primary producers and some land-holders  

Subdivision 387-G - Forestry roads and timber mill buildings  

SECTION 387-507 (ARCHIVE)   Transitional provision for certain non-arm's length transactions  

387-507(1)    
If:

(a) an entity incurred capital expenditure on an access road or a timber mill building for which the entity has deducted, or can deduct, an amount for a year of income before the 1997-98 income year under Division 10A of Part III of the Income Tax Assessment Act 1936 (except section 124J ); and

(b) the entity disposes of the road or building during the 1997-98 income year or a later income year in a transaction in which the parties do not deal at arm's length; and

(c) under the transaction the entity receives an amount less than the market value of what the amount is for; and

(d) subsection 41-65(2) of the Income Tax Assessment Act 1997 does not apply;

the entity is taken to have received that market value for the disposal.

387-507(2)    
In determining whether the parties to the transaction dealt at arm's length, consider any connection between them, as well as any other relevant circumstance.