Whenever clients are dealing with related parties there are a number of aspects that need to be carefully considered. This paper uses a case study to highlight the areas that need to be considered when acquiring assets from a member or their associate. It has a particular focus on the following:
- application of s66 of the SIS Act to these types of arrangements
- how to identify who is a related party
- application of the non-arm’s length income provisions
- dealing at arm’s length – section 109 of SIS Act.