Document ID: chunk:federal_register_of_legislation:C2023C00080:clause:2_28:p3
Version: federal_register_of_legislation:C2023C00080
Segment Type: clause
Provision Reference: sch 2 cl 28 (pt 3/16)
Character Range: 201506–204305

an entity becomes the *holder of a *registered emissions 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:
 (a) the issue of a *carbon unit under the Clean Energy Act 2011; or
 (b) the issue of an *Australian carbon credit unit under the Carbon Credits (Carbon Farming Initiative) Act 2011.
Note: In the application of Division 13 of Part III of the Income Tax Assessment Act 1936 (about international transfer‑pricing arrangements), this section is disregarded—see subsection 136AB(2) of the Income Tax Assessment Act 1936.

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:
 (i) a *carbon unit is transferred from your foreign account (within the meaning of the Clean Energy 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);
 (ii) a carbon unit is transferred from your nominee's foreign account (within the meaning of the Clean Energy 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);
 (iii) an *international emissions 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) an international emissions 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