INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10C - Deductions for capital expenditure on traveller accommodation  

SECTION 124ZD   REDUCTION OF DEDUCTIONS  

124ZD(1)   [Hotel expenditure]  

Where:


(a) apart from this subsection, a deduction would be allowable to a taxpayer under section 124ZC in respect of an amount of qualifying hotel expenditure in relation to the use of the hotel part or a part (in this subsection referred to as the relevant part ) of the hotel part during a year of income or a part of a year of income; and


(b) during the whole or a part of the year of income, or of that part of the year of income, as the case may be:


(i) any part of the hotel part or of the relevant part, as the case may be, was not used wholly or principally for the purpose of operating a hotel, motel or guest house; or

(ii) the hotel part or the relevant part, as the case may be, was used by the taxpayer only partly for the purpose of producing assessable income,

the amount of the deduction shall be reduced by such amount as the Commissioner considers fair and reasonable.

124ZD(2)   [Apartment expenditure]  

Where, apart from this subsection, a deduction would be allowable to a taxpayer under section 124ZC in respect of an amount of qualifying apartment expenditure in relation to the use of the apartment part or of a part (in this subsection referred to as the relevant part ) of the apartment part during a year of income or a part of a year of income and:


(a) during the whole or a part of the year of income, or of that part of the year of income, as the case may be, any part of the apartment part or of the relevant part, as the case may be, was not used, or made available for use, wholly for, or in association with, the provision of short-term accommodation for travellers; or


(b) during the whole or a part of the year of income, or of that part of the year of income, as the case may be, the apartment part or the relevant part, as the case may be, was used by the taxpayer only partly for the purpose of producing assessable income,

the amount of the deduction shall be reduced by such amount as the Commissioner considers fair and reasonable.

124ZD(3)   [Facility]  

For the purposes of subsection (2), a facility in a building shall be taken to be used, or made available for use, wholly in association with the provision of short-term accommodation for travellers at a particular time only if, at that time, it is used, or made available for use, wholly or principally in association with the provision of short-term accommodation in eligible apartments, units or flats contained in the building.

124ZD(4)   [Eligible apartments, etc]  

For the purposes of subsection (3), an apartment, unit or flat contained in an eligible apartment building shall be taken to be an eligible apartment, unit or flat at a particular time if the whole or a part of an amount of qualifying apartment expenditure is attributable to the whole or a part (which whole or part, as the case may be, is in this subsection referred to as the relevant part ) of the apartment, unit or flat, as the case may be, and:


(a) where the relevant part is the apartment part in relation to that amount of qualifying apartment expenditure - the owner of the apartment part at that time is taken to have dealt with the apartment part in the prescribed manner at that time or would, but for the operation of subsection 124ZC(5) , be taken to have dealt with the apartment part in the prescribed manner at that time; and


(b) where the relevant part is a part of the apartment part in relation to that amount of qualifying apartment expenditure - the owner of that part of the apartment part at that time is taken to have dealt with that part of the apartment part in the prescribed manner at that time or would, but for the operation of subsection 124ZC(5) , be taken to have dealt with that part of the apartment part in the prescribed manner at that time.

124ZD(5)   [Total or partial destruction of eligible building]  

Where:


(a) by reason of the destruction of an eligible building or a part of an eligible building, a deduction (in this subsection referred to as the relevant deduction ) is allowable in respect of so much of the residual capital expenditure in relation to an amount of qualifying hotel expenditure or qualifying apartment expenditure in respect of the eligible building as is attributable to the hotel part, a part of the hotel part, the apartment part or a part of the apartment part; and


(b) in respect of any part of the period commencing on the day on which the hotel part or apartment part, as the case may be, was first used by any person for any purpose after completion of the relevant construction and ending immediately before the time of destruction:


(i) a deduction has not been allowed and is not allowable under section 124ZC to any person in respect of that amount of qualifying hotel expenditure or qualifying apartment expenditure; or

(ii) a deduction that has been allowed or is allowable under section 124ZC to any person in respect of that amount of qualifying hotel expenditure or qualifying apartment expenditure has been reduced, or is liable to be reduced, by virtue of the application of subsection (1) or (2) of this section,

the relevant deduction shall be reduced by such amount as the Commissioner considers fair and reasonable.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.