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 expenditure you incur in an income year for the sole or dominant purpose of carrying on * environmental protection activities.
If Division 250 applies to you and an asset that is land:
Environmental protection activities are any of the following activities that are carried on by or for you:
(a) preventing, fighting or remedying:
(i) pollution resulting, or likely to result, from * your earning activity; or
(ii) pollution of or from the site of your earning activity; or
(iii) pollution of or from a site where an entity was carrying on any * business that you have acquired and carry on substantially unchanged as your earning activity;
(b) treating, cleaning up, removing or storing:
(i) waste resulting, or likely to result, from your earning activity; or
(ii) waste that is on or from the site of * your earning activity; or
(iii) waste that is on or from a site where an entity was carrying on any business that you have acquired and carry on substantially unchanged as your earning activity.
No other activities are environmental protection activities.40-755(3)
Your earning activity is an activity you carried on, carry on, or propose to carry on:
(a) for the * purpose of producing assessable income for an income year (except a * net capital gain); or
(b) for the purpose of * exploration or prospecting; or
(c) for the purpose of * mining site rehabilitation; or
(d) for purposes that include one or more of those purposes. 40-755(4)
If * your earning activity is:
(a) leasing a site you own; or
(b) granting a *right to use a site you own or control; or
(c) a similar activity involving a site;
that site is taken to be the site of your earning activity.
This means you can deduct your expenditure on environmental protection activities relating to the site, even if the pollution or waste is caused by another entity that uses the site.