Income Tax Assessment Act 1997
Note: A Commissioner ' s Remedial Power (CRP 2017/2) is relevant to this part of the tax law. Taxation Administration (Remedial Power - Small Business Restructure Roll-over) Determination 2017 (F2017L01687) modifies the operation of s 40-340 of the Income Tax Assessment Act 1997 and any other provisions of a taxation law whose operation is affected by the modified operation of s 40-340 in relation to an asset transferred under a small business restructure roll-over (item 8 of the table in s 40-340(1) ).
The operation of the relevant provisions is modified as follows:
If s 40-340 of ITAA 1997 provides for rollover relief in relation to a disposal of a depreciating asset because the condition in item 8 of the table in s 40-340(1) of ITAA 1997 is satisfied in relation to the asset, that section has effect as if it also provided that the disposal of the asset has no direct consequences under the income tax law (other than Div 40 of ITAA 1997).
The modification applies in respect of transfers on or after 8 May 2018.
An entity must treat a modification as not applying to it or any other entity if the modification would produce a less favourable result for it. The Commissioner is empowered by s 370-5 of Sch 1 to the Taxation Administration Act 1953 to make modifications, by legislative instrument, to ensure the law is administered to achieve its intended purpose or object.
You can deduct the amount worked out under subsection (2) for an income year if:
(a) you or another entity incurred capital expenditure that is covered under section 40-1010 in relation to particular trees; and
(b) you use the land occupied by the trees for the primary and principal purpose of *carbon sequestration by the trees; and
(c) the trees are destroyed during the income year; and
(d) you satisfy a condition in subsection 40-1005(5) for the trees just before they are destroyed. 40-1030(2)
Work out the amount of the deduction as follows: Method statement
Work out the total of the amounts you could have deducted under this Subdivision in relation to the trees for the period:
assuming that, during that period, you satisfied a condition in the table in subsection 40-1005(5) .
Subtract from the expenditure that is covered under section 40-1010 in relation to the trees:
The remaining amount (if positive) is your deduction under subsection (1).
This deduction is in addition to any deduction for the income year under section 40-1005 .