Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) In the circumstances referred to in subsections (2) and (3) it is necessary for the purposes of this Part to make special provision for the calculation of the consideration in respect of the disposal or acquisition of an interest in a FIF or a FLP.
(2) If a person disposed of an interest in a FIF or a FLP and:
(a) the person did not receive any consideration in respect of the disposal; or
(b) both of the following subparagraphs apply:
(i) the amount that, apart from this subsection, would be taken to be the consideration received by the person in respect of the disposal is greater or less than the market value of the interest at the time of the disposal;
(ii) the person, and the person to whom the interest was disposed of, were not dealing with each other at arm's length in connection with the disposal;
the person is taken to have received as consideration in respect of the disposal an amount equal to the market value of the interest at the time of the disposal.
(3) If a person acquired an interest in a FIF or a FLP and:
(a) the person did not pay or give any consideration in respect of the acquisition; or
(b) both of the following subparagraphs apply:
(i) the amount that, apart from this subsection, would be taken to be the consideration paid or given by the person in respect of the acquisition was greater or less than the market value of the interest at the time of the acquisition;
(ii) the person, and the person from whom the person acquired the interest, were not dealing with each other at arm's length in connection with the acquisition;
the person is taken to have paid or given as consideration in respect of the acquisition an amount equal to the market value of the interest at the time of the acquisition.