Commentary on Sections Overview Overview Section 684: Person liable to counteraction of income tax advantage
2031.This section defines the person liable to counteraction. It is based on section 703(1) and (2) of ICTA.
2032.Subsection (1) sets three positive conditions for this section to apply to a person in respect of a transaction in securities or two or more such transactions.
2033.The first condition, in the opening words of subsection (1), is that the person is in a position to obtain or has obtained an income tax advantage.
2034.The second condition, in subsection (1)(a), is that the person is in a position to obtain or has obtained the income tax advantage in circumstances where any of the specified provisions applies in relation to the person.
2035.The third condition, in subsection (1)(b), is that the person is in a position to obtain or has obtained the income tax advantage in consequence of either the transaction or the combined effect of the transactions.
2036.Subsection (3) covers the situation when an income tax advantage is obtained or obtainable by a person in consequence of the combined effect of the transaction or transactions and the liquidation of a company.