CONFISCATION ACT 1997 - SECT 40G Property lawfully acquired

CONFISCATION ACT 1997 - SECT 40G

    (1)     For the purposes of this Part—

        (a)     property acquired by a person for sufficient consideration that has otherwise been lawfully acquired is taken to have been lawfully acquired only if the consideration given for the property by the person was lawfully acquired;

        (b)     property acquired by a person other than for sufficient consideration or on the distribution of the estate of a deceased person is taken to have been lawfully acquired only if the person from whom it was acquired or the deceased person (as the case may be) lawfully acquired the property;

Note

The effect of paragraph (b) is that if, for example, the donor of property given as a gift to the person received the property as a gift from someone else who acquired the property unlawfully, the property remains property that has not been lawfully acquired.

        (c)     property acquired by a person as a prize or as the proceeds of any form of gambling is taken to have been lawfully acquired only if any money or other item of value used by the person for the purposes of entering the prize draw or for the purposes of the gambling (as the case may be) was lawfully acquired;

        (d)     property acquired by a person in the form of investment income is taken to have been lawfully acquired only if the property from which the investment income was derived was lawfully acquired;

        (e)     property derived by a person from salary or wages or from payment under a contract for services is taken to have been lawfully acquired only if the salary or wages or the payment for the services (as the case may be)—

              (i)     did not exceed the reasonable market rate applying at the time for the labour or services provided; or

              (ii)     were lawfully acquired by the person from whom they were received;

S. 40G(1)(f) substituted by No. 27/2016 s. 14.

        (f)     property acquired by a person, whether or not it is acquired for sufficient consideration, is not property lawfully acquired if the person acquired the property knowing, or in circumstances such as to arouse a reasonable suspicion, that the property was derived or realised, or substantially derived or realised, directly or indirectly, from any unlawful activity;

S. 40G(1)(g) inserted by No. 27/2016 s. 14.

        (g)     property acquired by a person that is or has been subject to a mortgage, lien, charge, security or other encumbrance is not property lawfully acquired if that mortgage, lien, charge, security or other encumbrance has been wholly or partly discharged using property that was not lawfully acquired.

    (2)     Subsection (1) does not limit the criteria for determining for the purposes of this Part whether or not property has been lawfully acquired.

    (3)     Despite subsection (1)(f), a person who acquires the property from the sale or disposal of the property under this Act lawfully acquires the property unless any consideration paid for the property has not been lawfully acquired.

S. 40H inserted by No. 79/2014 s. 16.