Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 4) 1992 No. 191 of 1992 - SECT 25

25. Section 160M of the Principal Act is amended:

   (a)  by omitting paragraphs (5)(b) and (c) and substituting the following
        paragraphs:

"(b) if:

        (i)    a person constructs or creates an asset; and

        (ii)   on its construction or creation, the asset is not vested in
               another person; the person constructing or creating the asset
               is taken to have acquired, and to have commenced to own, the
               asset at the time applicable under subsection 160U(5); and

   (c)  if:

        (i)    a person constructs or creates an asset that is a form of
               corporeal property; and

        (ii)   on its construction or creation, the asset is vested in another
               person; the other person is taken to have acquired, and to have
               commenced to own, the asset at the time applicable under
               subparagraph 160U(6)(a)(i) or (b)(i).";

   (b)  by omitting subsection (6) and substituting the following subsections:

"(6) Subject to this Part (other than subsection (7) of this section), if:

   (a)  a person creates an asset that is not a form of corporeal property;
        and

   (b)  on its creation, the asset is vested in another person; then
        subsections (6A) and (6B) apply.

"(6A) If subsection (6) applies:

   (a)  the person creating the asset is taken to have acquired, and to have
        commenced to own, the asset at the time applicable under subparagraph
        160U(6)(a)(ii) or (b)(ii); and

   (b)  the person creating the asset is later taken to havedisposed of the
        asset to the other person mentioned in paragraph (6)(b) of this
        section at the time applicable under subparagraph 160U(6)(a)(iii) or
        (b)(iii); and

   (c)  the person so taken to dispose of the asset is taken not to have paid
        or given any consideration, or incurred any costs or expenditure,
        referred to in any of paragraphs 160ZH(1)(a) to (d) (inclusive),
        (2)(a) to (d) (inclusive) and (3)(a) to (d) (inclusive) in respect of
        the asset; and

   (d)  paragraph 160ZD(2)(a) does not apply to that disposal of the asset.

"(6B) Also, if subsection (6) applies:

   (a)  the other person mentioned in paragraph (6)(b) is taken to have
        acquired the asset from the person creating it, and to have commenced
        to own it, at the time applicable under subparagraph 160U(6)(a)(i) or
        (b)(i); and

   (b)  paragraph 160ZH(9)(a) does not apply to that acquisition of the asset.

"(6C) Subsection (6) applies to the creation of an asset:

   (a)  whether or not the asset is created out of, over orotherwise in
        connection with, an existing asset; and

   (b)  whether or not the person creating the asset owned or disposed of
        anything at the moment of creation of the asset.

"(6D) In subsections (5) and (6):
'vest', in relation to an asset, means:

   (a)  in the case of an asset that is not a right - confer ownership of the
        asset on a person; or

   (b)  in the case of an asset that is a right - create the right in a person
        (whether or not conferring ownership of the asset on the person).";

   (c)  by omitting paragraph (7)(a) and substituting the following paragraph:

"(a) either:

        (i)    an act or transaction has taken place in relation to an asset,
               whether or not affecting the asset; or

        (ii)   an event affecting an asset has occurred; where, in a
               subparagraph (i) case in which the asset was affected or in any
               subparagraph (ii) case, it does not matter whether the asset
               was affected adversely or beneficially, or neither adversely
               nor beneficially; and";

   (d)  by omitting from paragraph (7)(b) "a person" and substituting "the
        person who owned the asset at the time of the act, transaction or
        event";

   (e)  by omitting from subparagraph (7)(b)(i) "for forfeiture or surrender
        of
the right or";   (f) by adding at the end of subsection (7) the following word
and paragraph:

"; and (e) the person is taken to have acquired and owned the asset
immediately before the disposal.";

   (g)  by omitting subsection (7A) and substituting the following
        subsections:

"(7A) Subsection (7), as in force before it was amended by the Taxation Laws 
Amendment Act (No. 4) 1992 , is taken not to have applied in relation to:

   (a)  an act or transaction that took place in relation to an asset during
        the period that commenced on 20 September 1985 and ended on 22 May
        1986; or

   (b)  an event affecting an asset that occurred during that period; if the
        requirement set out in subsection (7B) is met.

"(7B) For the purposes of subsection (7A), the requirement is:

   (a)  if the person who received, or was entitled to receive, the amount of
        money or other consideration referred to in paragraph (7)(b) owned the
        asset when the act or transaction took place, or the event occurred -
        that the person acquired the asset before 20 September 1985; or

   (b)  in any other case - that the person who owned the asset when the act
        or transaction took place, or the event occurred, acquired the asset
        before 23 May 1986.".