Document ID: chunk:federal_register_of_legislation:F2017L00219:body:0:p4
Version: federal_register_of_legislation:F2017L00219
Segment Type: other
Provision Reference: 
Character Range: 7407–10019

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 1208U (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 Secretary must comply in making a determination under subsection 1208W (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 Secretary 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, employment, trade, business, profession, vocation or calling.
student means a person who has turned 16, but has not turned 18, who is enrolled in a full-time course of study at a school, college, university or similar educational institution.

Part 4 Determination that asset is not controlled by individual
10 Purpose of Part 4
  This Part sets out decision-making principles with which the Secretary must comply in making a determination under subsection 1208Y (2) of the Act that, for the purposes of Division 11 of Part 3.18 of the Act, an asset that is owned by a company that is a controlled private company in relation to an individual, or an asset that is owned by a trust that is a controlled private trust in relation to an individual, is taken not to be controlled by the individual.
11 Is the individual an attributable