INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 3 - Determination of capital gains and capital losses  

SECTION 160ZD   CONSIDERATION IN RESPECT OF DISPOSAL  

160ZD(1)   [Amount of consideration]  

Subject to this Part, for the purposes of this Part, the consideration in respect of a disposal of an asset is:

(a) if the taxpayer has received or is entitled to receive an amount or amounts of money as a result of or in respect of the disposal - that amount or the sum of those amounts;

(b) if the taxpayer has received or is entitled to receive property other than money as a result of or in respect of the disposal - the market value of that property at the time of the disposal; or

(c) if the taxpayer has received or is entitled to receive both an amount or amounts of money and property other than money as a result of or in respect of the disposal - the sum of that amount or those amounts and the market value of that property at the time of the disposal.

160ZD(2)   [No consideration, inadequate or excessive consideration]  

Subject to subsection (2B), if a taxpayer has disposed of an asset and:

(a) there is no consideration in respect of the disposal;

(b) the whole or a part of the consideration received by the taxpayer in respect of the disposal cannot be valued; or

(c) the amount that would, but for this paragraph, be taken to be the consideration received by the taxpayer in respect of the disposal is greater or less than the market value of the asset at the time of the disposal and, in the case where the asset was disposed of to another person, the taxpayer and that other person were not dealing with each other at arm's length in connection with the disposal;

the taxpayer shall be deemed to have received as consideration in respect of the disposal an amount equal to the market value of the asset at the time of the disposal.

160ZD(2A)   [Market value of asset]  

For the purposes of the application of subsection (2) to the disposal of an asset otherwise than to another person, the market value of the asset at the time of the disposal is the amount that would have been the market value at that time if that disposal did not occur and was never proposed to occur.

160ZD(2B)   [Disposals not covered]  

Subsection (2) does not apply in relation to a disposal of an asset constituted by:

(a) the expiry, loss or destruction of the asset; or

(b) the cancellation of the asset where it is a statutory licence (within the meaning of subsection 160ZZPE(4) ) and there is no consideration in respect of the disposal.

160ZD(3)   [Where other provision deems no consideration]  

Subsection (2) does not apply by virtue of paragraph (a) of that subsection in relation to a disposal where another provision of this Part (however expressed) deems no consideration to have been received in respect of the disposal.

160ZD(4)   [Where consideration relates partly to disposal of an asset]  

Where any consideration paid or given in respect of a transaction relates in part only to the disposal of a particular asset, so much of that consideration as may reasonably be attributed to the disposal of the asset shall be taken to relate to the disposal of the asset.

160ZD(5)   [Decrease in value of asset of company, partnership, trust]  

Where -

(a) a decrease has taken place in the market value of a personal-use asset that is owned by a company or is the property of a trust estate;

(b) a disposal takes place of shares in the company or in a company that is related to the company or of an interest in the trust estate; and

(c) the amount that, under the preceding provisions of this section, would be the consideration in respect of the disposal is less than the amount (in this subsection referred to as the ``notional amount'' ) that, but for the decrease,would, under those provisions, be that consideration,

the consideration in respect of the disposal shall be deemed to be the notional amount.

160ZD(6)   [Operation of section]  

This section has effect subject to Division 16J of Part III .