Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p45
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 45/95)
Character Range: 5662565–5665313

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

420‑21  Incoming international transfers of emissions units

Unit held as trading stock or as a revenue asset
 (1) If:
 (a) any of the following conditions is satisfied:
 (iii) a *Kyoto unit is transferred from your foreign account (within the meaning of the Australian National Registry of Emissions Units Act 2011) to your Registry account (within the meaning of that Act) or your nominee's Registry account (within the meaning of that Act);
 (iv) a Kyoto unit is transferred from your nominee's foreign account (within the meaning of the Australian National Registry of Emissions Units Act 2011) to your Registry account (within the meaning of that Act) or your nominee's Registry account (within the meaning of that Act);
 (v) an *Australian carbon credit unit is transferred from your foreign account (within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) or your nominee's Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011);
 (vi) an Australian carbon credit unit is transferred from your nominee's foreign account (within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) or your nominee's Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011); and
 (b) as a result of the transfer, you start to *hold the unit as a *registered emissions unit; and
 (c) just before the transfer, the unit was your *trading stock or *revenue asset;
you are treated as if:
 (d) just before the transfer, you had sold the unit to someone else for its *cost; and
 (e) you had, immediately after the sale, bought