Commentary on Sections Overview Overview Section 440: Meaning and amount of “disposal-related liability”
1250.This section defines “disposal-related liability”. It is based on section 587B(8E) to (8G) of ICTA.
1251.Subsection (2) deals with contingent disposal-related obligations.
1252.It is in the nature of a contingency that it may occur after the time of disposal; hence the words “at any time”. If a contingency occurs later than immediately after the disposal, but existed as a possibility at the time of disposal, the value of the net benefit to the charity at the time of, or immediately after, the disposal must be reduced; and all necessary adjustments must be made to give effect to this. Conversely, if the contingency does not occur, to that extent there will be no obligation and no liability.