INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10BA - Australian films  

Subdivision B - Deductions for capital expenditure  

SECTION 124ZAN   VARIATION OF CONTRACTS  

124ZAN(1)   [Commissioner may refuse deduction]  

Where the Commissioner is satisfied that:

(a) a contract or arrangement was entered into by a taxpayer before 1 October 1980 in pursuance of which the taxpayer was to expend capital moneys in producing, or by way of contribution to the cost of producing, a film (in this subsection referred to as the original film );

(b) on or after that date and before 13 January 1983, the taxpayer entered into a contract (whether with the same or another person) in pursuance of which the taxpayer was to expend capital moneys in producing, or by way of contribution to the cost of producing, the original film or another film;

(c) the expenditure by the taxpayer of some or all of the capital moneys that were to be expended in pursuance of the contract referred to in paragraph (b) was to be in lieu of the expenditure by the taxpayer of some or all of the capital moneys that were to be expended by the taxpayer in pursuance of the contract or arrangement referred to in paragraph (a); and

(d) the taxpayer entered into the contract referred to in paragraph (b) 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 to the taxpayer in respect of capital moneys expended by the taxpayer in pursuance of the contract referred to in paragraph (b).

124ZAN(2)   [Contracts entered into post-12 January 1983]  

Where the Commissioner is satisfied that:

(a) a contract or arrangement was entered into by a taxpayer before 13 January 1983 in pursuance of which the taxpayer was to expend capital moneys in producing, or by way of contribution to the cost of producing, a film (in this subsection referred to as the original film );

(b) on or after that date, the taxpayer entered into a contract (whether with the same or another person) in pursuance of which the taxpayer was to expend capital moneys in producing, or by way of contribution to the cost of producing, the original film or another film;

(c) the expenditure by the taxpayer of some or all of the capital moneys that were to be expended in pursuance of the contract referred to in paragraph (b) was to be in lieu of the expenditure by the taxpayer of some or all of the capital moneys that were to be expended by the taxpayer in pursuance of the contract or arrangement referred to in paragraph (a); and

(d) the taxpayer entered into the contract referred to in paragraph (b) for the purpose, or for purposes that included the purpose, of obtaining a deduction under this Subdivision in accordance with section 124ZAFA ,

the Commissioner may, for the purposes of the application of this Subdivision in relation to the capital moneys expended by the taxpayer in pursuance of the contract referred to in paragraph (b), treat that contract as if it had been entered into on the date on which the contract referred to in paragraph (a) was entered into.