Document ID: chunk:federal_register_of_legislation:C2025C00014:section:25a:p5
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 25A (pt 5/6)
Character Range: 180973–183657

exceeds the sum of:
 (i) any expenditure incurred by the taxpayer in respect of the relevant property, not including:
 (A) any consideration given by the taxpayer in respect of the transfer of the relevant property to the taxpayer; or
 (B) expenditure to which subparagraph (ii) applies;
 (ii) where the taxpayer incurred expenditure of a capital nature in respect of the relevant property otherwise than:
 (A) in acquiring property for the purpose of profit‑making by sale; or
 (B) as part of a profit‑making undertaking or scheme;
  an amount equal to so much of the consideration received or receivable by the taxpayer in respect of the sale of the relevant property by the taxpayer as exceeds the amount that, in the opinion of the Commissioner, would have been the consideration received or receivable by the taxpayer if the taxpayer had not incurred that capital expenditure; and
 (iii) the amount of any profit included in the assessable income of the transferor in respect of the transfer of the relevant property to the taxpayer;
 (c) if the relevant property is deemed to have been acquired by the taxpayer by virtue of the application of this section (either directly or indirectly) in relation to property (in this paragraph referred to as the related property) that was actually acquired by the taxpayer or by another person or other persons for the purpose of profit‑making by sale—the Commissioner shall have regard to the extent to which the relevant property consists of, or is attributable to, the related property;
 (d) if the relevant property consists of rights to acquire shares in a company, being rights that the taxpayer is deemed by subsection (4) to have acquired for the purpose of profit‑making by sale—the relevant property shall be deemed to have been acquired by the taxpayer at no cost; and
 (e) if the relevant property consists of bonus shares that the taxpayer is deemed by subsection (4) to have acquired for the purpose of profit‑making by sale—the cost to the taxpayer of the relevant property shall be ascertained in accordance with section 6BA.
 (11) For the purposes of this section, property shall be taken to have been transferred to a person (in this subsection referred to as the transferee) in the prescribed manner if:
 (a) the following conditions are satisfied:
 (i) the property is transferred by way of gift or for consideration the amount or value of which is less than the amount that, in the opinion of the Commissioner, is the value of the property immediately before the time of transfer;
 (ii) the property is transferred otherwise than as a result of:
 (A) a will, a codicil or an order of a court that varied or modified the