Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 250 - Assets put to tax preferred use  

Subdivision 250-B - When this Division applies to you and an asset  

Tax preferred use of asset

SECTION 250-60   Tax preferred use of an asset  

250-60(1)  
An asset is put to a tax preferred use at a particular time if:


(a) an *end user (or a *connected entity) holds, at that time, rights as lessee under a lease of the asset; and


(b) either or both of the following subparagraphs is satisfied at that time:


(i) the asset is, or is to be, used by or on behalf of an end user who is a *tax preferred end user because of paragraph 250-55(a) (tax preferred entity);

(ii) the asset is, or is to be, used wholly or principally outside Australia and an end user of the asset is a tax preferred end user because of paragraph 250-55(b) (foreign resident or business).

If this subsection applies, the tax preferred use of the asset is the lease referred to in paragraph (a).

Note:

For particular arrangements that are treated as leases, see section 250-80 .

250-60(2)  
An asset is also put to a tax preferred use at a particular time if:


(a) at that time the asset is, or is to be, used (whether or not by you) wholly or partly in connection with:


(i) the production, supply, carriage, transmission or delivery of goods; or

(ii) the provision of services or facilities; and


(b) either or both of the following subparagraphs is satisfied at that time:


(i) some or all of the goods, services or facilities are, or are to be, produced for or supplied, carried, transmitted or delivered to or for an *end user who is a *tax preferred end user because of paragraph 250-55(a) (tax preferred entity) but is not an *exempt foreign government agency;

(ii) the asset is, or is to be, used wholly or principally outside Australia and an end user of the asset is a tax preferred end user because of paragraph 250-55(b) (foreign resident or business).

If this subsection applies, the tax preferred use of the asset is the production, supply, carriage, transmission, delivery or provision referred to in paragraph (a).

250-60(3)  


To avoid doubt, the facilities referred to in subsection (2) include:


(a) hospital or medical facilities; or


(b) prison facilities; or


(c) educational facilities; or


(d) (Repealed by No 41 of 2011)


(e) transport facilities; or


(f) the supply of water, gas or electricity; or


(g) housing or accommodation; or


(h) premises from which to operate a *business or other undertaking.

250-60(4)  
If the asset is being *put to a tax preferred use:


(a) the members of the tax preferred end user group are:


(i) the *tax preferred end user; and

(ii) the *connected entities of the tax preferred end user; and


(b) the members of the tax preferred sector are:


(i) the tax preferred end user (and connected entities); and

(ii) any *tax preferred entity (or a connected entity); and

(iii) any entity that is a foreign resident.

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