Section EW 42 — Income Tax Act 2007: Consideration when acquisition for no, or inadequate, consideration

EW 42 Consideration when acquisition for no, or inadequate, consideration When this section applies (1) This section applies when— (a) a person becomes a party to a financial arrangement; and (b) the person acquires an entitlement under the arrangement— (i) not for monetary consideration; or (ii) for a consideration that is less than the market value of the entitlement on the date of the acquisition. Consideration is market value (2) The person is treated as having paid the market value that the entitlement had on the date of the acquisition. Defined in this Act: consideration , financial arrangement , pay , Compare: 2004 No 35 s EW 43