INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10 - Mining and quarrying  

Subdivision A - General mining  

SECTION 122DE   RESIDUAL (19 AUGUST 1981 TO 19 JULY 1982) CAPITAL EXPENDITURE  

122DE(1)   [Deductions from allowable capital expenditure to ascertain residual]  

For the purposes of this Subdivision, but subject to subsection (2), the residual (19 August 1981 to 19 July 1982) capital expenditure of a taxpayer as at the end of a year of income (in this section referred to as the relevant year of income ) shall be ascertained by deducting from the amount of allowable capital expenditure incurred by the taxpayer after 18 August 1981 and before the end of the relevant year of income, being:


(a) expenditure incurred on or before 19 July 1982; or


(b) expenditure incurred after 19 July 1982:


(i) under a contract entered into on or before 19 July 1982; or

(ii) in respect of the construction of property by the taxpayer where that construction commenced on or before 19 July 1982,

but not being:


(c) expenditure incurred under a contract entered into on or before 18 August 1981; or


(d) expenditure incurred in respect of the construction of property by the taxpayer where that construction commenced on or before 18 August 1981,

the sum of:


(e) any part of that allowable capital expenditure that:


(i) has been allowed or is allowable as a deduction under section 122DF from the assessable income of a year of income preceding the relevant year of income; or

(ii) was incurred on property (not being property in respect of which a notice has been duly given to the Commissioner under section 122B by the taxpayer and a person who acquired the property from the taxpayer):

(A) that has been disposed of, lost or destroyed; or

(B) the use of which by the taxpayer for prescribed purposes has been otherwise terminated,
and has not been allowed and is not allowable as a deduction from the assessable income of any year of income that ended before the year of income in which the disposal, loss, destruction or termination of use took place; and


(f) so much of any amounts specified in notices duly given to the Commissioner under section 122B in relation to the acquisition from the taxpayer, during the relevant year of income or a preceding year of income, of a mining or prospecting right or mining or prospecting information as is attributable to expenditure that would, but for this paragraph, be included in the residual (19 August 1981 to 19 July 1982) capital expenditure of the taxpayer as at the end of the relevant year of income.

122DE(2)   [Recommencement of use of property after 18 August 1981]  

Where property referred to in sub-subparagraph (1)(e)(ii)(B) has, after 18 August 1981 and on or before 19 July 1982, come into use for purposes for which allowable capital expenditure may be incurred, so much of the capital expenditure incurred by the taxpayer on that property after 17 August 1976 and before the termination of use as the Commissioner determines shall, for the purposes of this section, be deemed to have been incurred, on the day on which the property so came into use, for the purposes for which the property so came into use.


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