Taxation Laws Amendment Act 1993 (17 of 1993)

Part 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 12   Amendment relating to depreciation of vehicles for transporting disabled persons

45   Application

(Definitions)

 

(1) In this section, unless the contrary intention appears:
            

"arrangement" has the same meaning as in section 26AJ of the Principal Act;

"associate" has the same meaning as in section 26AAB of the Principal Act;

"post-16 December 1992 property", in relation to a taxpayer, means:

(a) a unit of property that was acquired by the taxpayer under a contract entered into after 16 December 1992; or

(b) a unit of property that was constructed by the taxpayer and commenced to be constructed after 16 December 1992;

"pre-17 December 1992 property", in relation to a taxpayer, means:

(a) a unit of property that was acquired by the taxpayer under a contract entered into before 17 December 1992; or

(b) a unit of property that was constructed by the taxpayer and commenced to be constructed before 17 December 1992;

"use", in relation to property, includes:

(a) install ready for use; or

(b) use for producing income from hire or rental.

(Extended meaning of "associate": re-constituted partnerships etc.)

      

(2) If section 59AA of the Principal Act operates so as to deem a taxpayer ("the transferor") to have disposed of property to another taxpayer ("the transferee"), the transferor and transferee are taken to be associates of each other for the purposes of the application of this section to the property.
            

(Sale-leaseback and related party transfer)

      

(3) For the purposes of this section, if, after 16 December 1992:
            

(a) a taxpayer ("the purchaser") enters into a contract with another taxpayer ("the vendor") under which a unit of pre-17 December 1992 property of the vendor is acquired by the purchaser and thereby becomes post-16 December 1992 property of the purchaser; and

(b) the taxpayer, or any of the taxpayers, (which may include the purchaser) who first uses the property after it is acquired by the purchaser is:

(i) in a case where the property was used while it was owned by the vendor-the taxpayer, or any of the taxpayers, (whether or not the vendor) who last used it, or an associate of any such taxpayer; or

(ii) in any other case-the vendor or an associate of the vendor;

then the property, instead of becoming post-16 December 1992 property of the purchaser, is taken to become pre-17 December 1992 property of the purchaser.

(Arrangements in relation to goods on order)

      

(4) For the purposes of this section, if, after 16 December 1992:
            

(a) a taxpayer ("the actual purchaser") acquires a unit of property under a contract under which it becomes post-16 December 1992 property; and

(b) before 17 December 1992, another taxpayer ("the orderer") entered into a contract or arrangement for the acquisition of the property; and

(c) after 16 December 1992 and at a time when the orderer was a party to the contract or arrangement in paragraph (b), but not the owner of the property, the orderer entered into an arrangement under which:

(i) at a time when the actual purchaser was an associate of the orderer, the actual purchaser became the owner of the property; or

(ii) at a time when the actual purchaser was the owner of the property, the orderer, or an associate of the orderer, became the lessee or end-user of the property;

then the property is, instead of being post-16 December 1992 property of the actual purchaser, taken to be pre-17 December 1992 property of the actual purchaser.

(Amendments apply to post-16 December 1992 property)

      

(5) The amendments made by this Division apply to post-16 December 1992 property of a taxpayer.