Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p50
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 50/95)
Character Range: 5675168–5677839

without devolving to the first entity's *legal personal representative;
the beneficiary is treated as having bought the unit for the amount included in the first entity's assessable income under subsection (1).

Transfer—treatment of acquirer
 (4) If:
 (a) the cessation is because of the transfer of the unit to another entity; and
 (b) neither subsection (2) nor (3) applies;
the other entity is treated as having bought the unit for the amount included in the first entity's assessable income under subsection (1).
 (5) If subsection (4) applies to the transfer of the unit to another entity:
 (a) the first entity must inform the other entity that, as a result of subsection (4) applying, the other entity is treated as having bought the unit for a particular amount; and
 (b) the first entity must do so:
 (i) at, or as soon as practicable after, the time of the transfer; or
 (ii) by a later time allowed by the Commissioner.

Source
 (6) An amount included in the first entity's assessable income under subsection (1) is taken, for the purposes of the *income tax laws, to have a source in Australia.

420‑41  Ceasing to be taxable in Australia on the proceeds of sale of registered emissions units
  If:
 (a) you start to *hold a *registered emissions unit; and
 (b) assuming that you had sold the unit to someone else immediately after you started to hold the unit, the proceeds of sale would have been included in your assessable income under section 420‑25; and
 (c) you hold the unit until a later time (the taxable status cessation time), where the following conditions are satisfied:
 (i) assuming that you had sold the unit to someone else immediately before the taxable status cessation time, the proceeds of the sale would have been included in your assessable income under section 420‑25;
 (ii) assuming that you had sold the unit to someone else at the taxable status cessation time, the proceeds of sale would not have been included in your assessable income under section 420‑25;
you are treated as if:
 (d) just before the taxable status cessation time, you had sold the unit to someone else for its *market value; and
 (e) you had, at the taxable status cessation time, bought it back for the same amount.
Note: Under the International Tax Agreements Act 1953, for some foreign residents, the proceeds of the sale of a registered emissions unit are not assessable income in Australia.

420‑42  Deduction for expenses incurred in ceasing to hold a registered emissions unit
 (1) You can deduct expenditure to the extent that you incur it in ceasing to *hold a *registered emissions unit.

Timing
 (2) You deduct the expenditure in the income year in