INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART XII - DROUGHT INVESTMENT ALLOWANCE  

Division 5 - Special provisions about primary producers  

Subdivision B - Group companies  

SECTION 660   DEDUCTION NOT LOST TO PRIMARY PRODUCER TAKING ITEM ON LEASE DESPITE CONTRACT ETC. FOR USE OF ITEM AFTER 12 MONTH PERIOD  

660(1)   When section applies.  

This section applies if the taxpayer would lose the entitlement to the deduction to which Subdivision C of Division 3 applies:

(a) under paragraph 649(1)(c) because the taxpayer entered into a contract or arrangement with another person for the use of the item of drought mitigation property by the other person; or

(b) under paragraph 649(1)(e) because the taxpayer acquired the item of drought mitigation property and entered into a contract or arrangement with another person for its use by the other person;

and the other person is a group company (see section 682 ) of the taxpayer.

660(2)   Conditions for not losing the deduction.  

The taxpayer does not lose the entitlement to the deduction if the use of the item under the contract or arrangement was:

(a) to take place while the group company remains a group company of the taxpayer; and

(b) to be wholly and exclusively both in Australia and for the purpose of producing assessable primary production income other than by leasing the item or granting a right to another person to use the item.