Commonwealth Numbered Acts

INCOME TAX LAWS AMENDMENT ACT 1979 No. 149 of 1979 - SECT 17

17. (1) Section 123F of the Principal Act is amended-

   (a)  by omitting ''Where, for any reason'' and substituting ''Subject to
        this section, where, for any reason''; and

   (b)  by adding at the end thereof the following sub-sections:

''(2) Where-

   (a)  the change in the ownership of, or in the interests of persons in, the
        property occurred in consequence of a written agreement;

   (b)  an amount was specified in the agreement as the value of the property
        for the purposes of the agreement; and

   (c)  the amount so specified in the agreement-

        (i)    is less than the amount that was the market value of the
               property immediately before the time when the change occurred;
               and

        (ii)   is also less than the amount ascertained by deducting from the
               total expenditure of a capital nature incurred in respect of
               the property by the person or persons who owned the property
               before the change the sum of the deductions allowed or
               allowable in respect of that expenditure under this Division,

the provisions of this Division apply as if-

   (d)  the person or persons who owned the property before the change had, at
        the time when the change occurred, sold the property for a price equal
        to the amount referred to in sub-paragraph (i) of paragraph (c) or the
        amount ascertained in accordance with sub-paragraph (ii) of paragraph
        (c), whichever is the less; and

   (e)  the person or persons who owned the property after the change had, at
        the time when the change occurred, incurred expenditure of a capital
        nature on the acquisition of the property of an amount equal to the
        amount specified in the agreement.

''(3) A reference in sub-section (2) to the market value of property at a
particular time shall, if there is insufficient evidence of the market value
of the property at that time, be read as a reference to such amount as, in the
opinion of the Commissioner, is fair and reasonable.''.

(2) The amendments made by sub-section (1) apply in relation to a change in
the ownership of, or in the interests of persons in, property after 12 June
1979 other than a change occurring in consequence of an agreement entered into
on or before that date.