Document ID: chunk:federal_register_of_legislation:C2004A02159:body:0:p6
Version: federal_register_of_legislation:C2004A02159
Segment Type: other
Provision Reference: 
Character Range: 11946–14656

value of the property immediately before the time of disposal,
    the consideration receivable by the taxpayer in respect of the disposal of the property shall be deemed to be the market value of the property immediately before the time of disposal or the depreciated value of the property immediately before the time of disposal, whichever is the less.
    "(5) For the purposes of the application of sub-section (4) in relation to property disposed of by a taxpayer—
          (a) the reference in that sub-section to the amount receivable by the taxpayer in respect of the disposal shall be read as a reference to—
            (i) in the case of a sale of the property to which sub-paragraph (ii) does not apply—the sale price less the expenses of the sale of the property; or
            (ii) in the case where the property is sold with other assets and no separate value is allocated to the property—the amount determined by the Commissioner; and
          (b) a reference to the market value of the property at a particular time shall, if there is insufficient evidence of the market value 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 property disposed of by a taxpayer after 12 June 1979 otherwise than under a contract entered into on or before that date.

Disposal of depreciated property on change of ownership or interest
9. (1) Section 59aa 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 an 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 is less than the amount that was the market value of the property immediately before the time when the change occurred and is also less than the depreciated value of the property immediately before that time,
    the provisions of this Act relating to depreciation apply as if—
          (d) the person or persons who owned the property before the change had, at the time when the change occurred, disposed of the property for a consideration equal to the market value of the property immediately before the time when the change occurred or the depreciated value of the property immediately before that time, whichever is the less; and
          (e) the person or persons who