Document ID: chunk:federal_register_of_legislation:F2015L00068:front:0:p46
Version: federal_register_of_legislation:F2015L00068
Segment Type: other
Provision Reference: 
Character Range: 117886–120565

of the enterprise for the tax year that preceded the tax year mentioned in subparagraph (ii); and
 (b) any reductions or adjustments that might have been made to the amounts mentioned in subparagraphs (a) (i), (ii) and (iii) if the entity that had carried on the first primary production enterprise in the tax years mentioned in those subparagraphs had been:
 (i) the individual or the individual's spouse; or
 (ii) a company that was a controlled private company in relation to the individual or the individual's spouse; or
 (iii) a trust that was a controlled private trust in relation to the individual or the individual's spouse; or
 (iv) a business partnership of which the individual, or the individual's spouse, was a partner.

 (3) In this section:
first primary production enterprise means the first primary production enterprise mentioned in paragraph 52ZZZF (1) (b) of the Act.
tax year, in relation to a primary production enterprise, means a tax year of the entity that carried on the enterprise.
test time means the test time in relation to the individual mentioned in subsection 52ZZZF (1).

Part 3 Determination of reduction of value of specified asset

8 Purpose of Part 3

  This Part sets out decision-making principles with which the Commission must comply in making a determination under subsection 52ZZZH (2) of the Act that the value of a specified asset owned by a company or a trust is to be reduced by the whole or a specified part of a specified liability.

9 Liability arising from genuine arms-length transaction

 (1) The Commission must consider whether the specified liability arose from a genuine arm's length transaction between the company or trust that owns the specified asset and another entity.

 (2) A transaction is taken to be a genuine arm's length transaction for the purposes of subsection (1) if the transaction:
 (a) relates to an arrangement that relates to the specific business activities of the company or trust; and
 (b) is not with, or does not relate to an arrangement with, a person who is a minor; and
 (c) is made under a written agreement that is signed by each party to the agreement and witnessed by an independent person.

 (3) Provided the requirements in subsection (2) are met in relation to a transaction, the transaction may be a transaction between the company or trust that owns the specified asset and an individual who is the sole attributable stakeholder of the company or trust.

 (4) In this section:
minor means a person who has not turned 18, but does not include a person (other than a student) who:
 (a) has turned 16; and
 (b) is engaged on a full-time basis in an occupation, including an office,