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INCOME TAX ASSESSMENT ACT 1936 - SECT 102CA Consideration in respect of transfer to be included in assessable income of transferor in certain cases

INCOME TAX ASSESSMENT ACT 1936 - SECT 102CA

Consideration in respect of transfer to be included in assessable income of transferor in certain cases

  (1)   Subject to this section, where:

  (a)   a right to receive income from property is transferred, otherwise than by a will or codicil, by a person to another person;

  (b)   consideration has been received or is receivable in respect of the transfer; and

  (c)   immediately after the transfer, subsection   102B(1) (other than subparagraph   102B(1)(b)(ii)) does not apply in relation to the transfer;

the assessable income of the transferor of the year of income in which the right is transferred shall include the amount of the consideration.

  (2)   Subsection   (1) does not apply in relation to a transfer of a right to receive income from property where:

  (a)   the right was not a right that arose from the ownership by the transferor of an interest in the property; or

  (b)   the right arose from the ownership by the transferor of an interest in the property and, before or at the time of the first - mentioned transfer, the transferor transferred that interest to the transferee; or

  (c)   the right is, or is part of, a Division   230 financial arrangement (within the meaning of the Income Tax Assessment Act 1997 ).

  (3)   Where, by reason of subsection   51 - 50(3) of the Income Tax Assessment Act 1997 , income derived by a person pursuant to a transfer to the person of a right to receive income from property is not exempt from tax under section   51 - 30 of that Act, subsection   (1) does not apply in relation to the transfer.

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