Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

PART 3-50 - CLIMATE CHANGE

View history reference

Division 420 - Registered emissions units

View history reference

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)

View history reference

This section does not apply to the issue of an *Australian carbon credit unit under the Carbon Credits (Carbon Farming Initiative) Act 2011 .