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.
This section applies if:
(a) you or another entity incurred capital expenditure; and
(b) the expenditure is covered under section 40-1010 in relation to particular trees; and
(c) you begin to satisfy a condition in the table in subsection 40-1005(5) for the trees. 40-1035(2)
You may give the last entity (if any) that satisfied a condition mentioned in subsection 40-1005(5) for the trees a written notice requiring the entity to give you any or all of the following information:
(a) the amount of the expenditure covered under section 40-1010 in relation to the trees;
(b) the income year in which the trees were established. 40-1035(3)
The notice must:
(a) be given within 60 days of your beginning to satisfy the condition mentioned in paragraph (1)(c); and
(b) specify a period of at least 60 days within which the information must be given; and
(c) set out the effect of subsection (4).
Subsections (5), (6) and (7) explain how this subsection operates if the entity to which the notice is to be given is a partnership.Requirement to comply with notice 40-1035(4)
The entity to whom the notice is given must not intentionally refuse or fail to comply with the notice.
Penalty: 10 penalty units.Giving the notice to a partnership 40-1035(5)
If the entity to whom the notice is given is a partnership:
(a) you may give it to the partnership by giving it to any of the partners (this does not limit how else you can give it); and
(b) the obligation to comply with the notice is imposed on each of the partners (not on the partnership), but may be discharged by any of them. 40-1035(6)
A partner must not intentionally refuse or fail to comply with that obligation.
Penalty: 10 penalty units.40-1035(7)
Subsection (6) does not apply if another partner has already complied with that obligation.
A defendant bears an evidential burden in relation to the matters in subsection (7), see subsection 13.3(3) of the Criminal Code .Limits on giving a notice 40-1035(8)
Only one notice can be given in relation to the same trees.