Tax Laws Amendment (2006 Measures No. 2) Act 2006 (58 of 2006)

Schedule 7   Technical corrections and improvements

Part 1   Amendments commencing on Royal Assent

Income Tax Assessment Act 1997

105   At the end of Division 960

Add:

Subdivision 960-S - Market value

Guide to Subdivision 960-S

960-400 What this Subdivision is about

The expression "market value" is often used in this Act with its ordinary meaning.

However, in some cases that expression has a meaning affected by this Subdivision.

Table of sections

Operative provisions

960-405 Effect of GST on market value of an asset

960-410 Market value of non-cash benefits

Operative provisions

960-405 Effect of GST on market value of an asset

(1) The market value of an asset at a particular time is reduced by the amount of the *input tax credit (if any) to which you would be entitled assuming that:

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

(b) the acquisition had been solely for a *creditable purpose.

(2) Subsection (1) does not apply:

(a) to an asset the *supply of which cannot be a *taxable supply; or

(b) in working out the *market value of economic benefits, or of *equity or loan interests, for the purposes of Part 3-95 (about value shifting).

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

960-410 Market value of non-cash benefits

In working out the market value of a *non-cash benefit, disregard anything that would prevent or restrict conversion of the benefit to money.