Deciding whether a gift or transfer is of Australian or foreign property
269 Deciding whether a gift or transfer is of Australian or foreign property
For this subdivision (but without limiting the effect of subsections (2) and (3))—
a gift or transfer of property is a gift or transfer of Australian property if the property was Australian property immediately before the gift or transfer was made; and
a gift or transfer of property is a gift or transfer of foreign property if the property was foreign property immediately before the gift or transfer was made.
For this subdivision, if—
a person (the donor) transfers foreign property (the primary transfer) to another person (the first recipient); and
the donor’s main purpose in making the primary transfer is to enable (directly or indirectly) the first recipient, or another person, to make a gift to another entity (the ultimate recipient); and
the first recipient, or another person, makes a gift (the ultimate gift) to the ultimate recipient; and
the primary transfer enabled (directly or indirectly) the first recipient, or the other person, to make the ultimate gift;
the ultimate gift is taken to be a gift of foreign property.
For this subdivision, a gift or transfer is taken to be a gift or transfer of foreign property if—
a person—
changes the location of property so that it becomes Australian property; or
uses foreign property to acquire Australian property; and
the person’s main purpose in changing the location of the property, or in acquiring the Australian property, was to enable the person to make a gift or transfer of property that would be Australian property rather than foreign property; and
the person makes a gift or transfer of Australian property in accordance with that purpose.
This subdivision applies to a gift or transfer of money made by use of a credit card as if the gift or transfer were of money standing to the credit of an account kept in the country in which the credit card is based.
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