INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10AAA - Transport of minerals and quarry materials  

Subdivision A - Transport of certain minerals  

SECTION 123A   APPLICATION OF SUBDIVISION  

123A(1)   [Transport of minerals other than petroleum]  

Subject to this section, this Subdivision applies to capital expenditure incurred by a taxpayer on or after 1 July 1961 and before the 1997-98 year of income on, or by way of contribution to capital expenditure of another person on, a railway, road, pipe-line or other facility constructed or acquired for use, in the carrying on of a business for the purpose of gaining or producing assessable income, primarily and principally for the transport of minerals obtained from the carrying on by any person or persons of prescribed mining operations, or of processed materials produced from such minerals, other than transport wholly within the site of prescribed mining operations, as reduced by:


(a) so much of that expenditure of the taxpayer as has been allowed or is allowable as a deduction in an assessment in respect of the year of income that ended on 30 June 1967 or an earlier year of income; and


(b) where a deduction has been allowed or is allowable, in the assessment of the taxpayer in respect of a year of income earlier than the year of income that ended on 30 June 1967, in respect of an amount appropriated by the taxpayer for expenditure in respect of those facilities - the amount of that deduction, as reduced by so much (if any) of the amount so appropriated that was not expended in respect of those facilities in the year of income next succeeding that earlier year of income.

Note:

Subdivision 330-H of the Income Tax Assessment Act 1997 gives a taxpayer a deduction for transport capital expenditure incurred in the 1997-98 year of income or a later year of income.

123A(1A)   [Transport of petroleum]  

Subject to this section, this Subdivision also applies to capital expenditure incurred by a taxpayer before the 1997-98 year of income on, or by way of contribution to capital expenditure of another person on, a railway, road, pipe-line or other facility constructed or acquired for use, in the carrying on of a business for the purpose of gaining or producing assessable income, primarily and principally for the transport of petroleum obtained from mining operations carried on other than transport that forms part of those mining operations or transport that forms part of a system of reticulation to consumers or is provided for the purposes of a particular consumer or consumers.

Note:

Subdivision 330-H of the Income Tax Assessment Act 1997 gives a taxpayer a deduction for transport capital expenditure incurred in the 1997-98 year of income or a later year of income.

123A(1B)   [Expenditure on pipe-line]  

This Subdivision does not apply, in relation to a taxpayer, to capital expenditure incurred by the taxpayer on, or by way of contribution to capital expenditure of another person on, a pipe-line referred to in subsection (1A) where the construction of the pipe-line was commenced on or before 30 June 1968 and was or is completed on or before 31 December 1969.

123A(1C)   [Port facilities - application]  

This Subdivision does not apply, in relation to a taxpayer, to capital expenditure incurred by the taxpayer on, or by way of contribution to capital expenditure of another person on, a port facility or other facility for ships unless:


(a) the expenditure was or is incurred after 17 August 1976 and before the 1997-98 year of income; and


(b) the expenditure has not been allowed, and will not be allowable, as a deduction, and has not been, and will not be, taken into account in ascertaining the amount of an allowable deduction, from the assessable income of the taxpayer of any year of income under any provision of this Act other than a provision of this Subdivision.

Note:

Subdivision 330-H of the Income Tax Assessment Act 1997 gives a taxpayer a deduction for transport capital expenditure incurred in the 1997-98 year of income or a later year of income.

123A(1D)   [Section 123E disregarded]  

In determining whether paragraph (1C)(b) applies in relation to capital expenditure incurred by a taxpayer, the provisions of subsection 123E(1) shall be disregarded.

123A(1E)   [Capital expenditure incurred 9 March 1984 to end 1996/97 year]  

This Subdivision does not apply, in relation to a taxpayer, to capital expenditure incurred by the taxpayer by way of contribution to capital expenditure of a prescribed body on railway rolling-stock unless the capital expenditure is incurred by the taxpayer after 9 March 1984 and before the 1997-98 year of income.

Note:

Subdivision 330-H of the Income Tax Assessment Act 1997 gives a taxpayer a deduction for transport capital expenditure incurred in the 1997-98 year of income or a later year of income.

123A(1F)   [Commissioner may refuse deduction]  

Where:


(a) on or before 9 March 1984, a person incurred an amount of capital expenditure (in this subsection referred to as the original expenditure ) by way of contribution to the capital expenditure or proposed capital expenditure of a prescribed body on railway rolling-stock;


(b) after that date a taxpayer (whether or not the person referred to in paragraph (a)) incurred or incurs an amount of capital expenditure (in this subsection referred to as the substituted expenditure ) by way of contribution to the capital expenditure of a prescribed body on railway rolling-stock; and


(c) the Commissioner is of the opinion that:


(i) the substituted expenditure was incurred by the taxpayer in lieu of the original expenditure; and

(ii) the taxpayer incurred the substituted expenditure for the purpose, or for purposes that included the purpose, of obtaining a deduction under this Subdivision,

the Commissioner may refuse to allow a deduction under this Subdivision in respect of the substituted expenditure.

123A(1G)   [Amount of capital expenditure]  

A reference in subsection (1F) to an amount of capital expenditure shall be read as including a reference to a part of an amount of capital expenditure.

123A(1H)   [Subsec (2) and (3) restricted application]  

Subsections (2) and (3) do not apply to an amount received in the 1997-98 year of income or a later year of income if the amount is received as recoupment as defined by section 20-25 of the Income Tax Assessment Act 1997 .

Note:

Subdivision 20-A of the Income Tax Assessment Act 1997 applies instead.

123A(2)   [Where capital expenditure recouped]  

This Subdivision does not apply, and shall be deemed never to have applied, in relation to a taxpayer, to capital expenditure in respect of which the taxpayer is recouped, or becomes entitled to be recouped, by the Commonwealth, by a State, by the Administration of a Territory, by an authority constituted by or under a law of the Commonwealth, of a State or of a Territory or by any other person where the amount of the recoupment is not, and will not be, included in the assessable income of the taxpayer of any year of income.

123A(3)   [Commissioner's discretion to dissect]  

Where a taxpayer receives, or becomes entitled to receive, an amount that constitutes to an unspecified extent a recoupment of capital expenditure, the Commissioner may, for the purposes of subsection (2), determine the extent to which that amount constitutes a recoupment of that expenditure.


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