Income Tax Act 2007 section 681DI

Disposal of interest to associate

Section 681DI determines the value that must be used when a person disposes of an interest in an asset to an associate, ensuring that the highest possible value is applied for tax purposes.

• When a person disposes of an interest in an asset (whether a lessee's interest, lessor's interest, or any other interest) to an associate, special valuation rules apply
• The person disposing of the interest is treated as receiving the highest of three amounts: the actual sum received, the open market value of the interest, or the value of the interest to the person receiving it
• The disposal can be either direct or indirect, covering a wide range of possible transaction structures
• The disposal can be carried out through a single transaction or a series of transactions as described in related provisions concerning sums obtained in respect of interests