INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
Where, under a contract for the acquisition or construction of property that includes a unit of eligible property, an amount (in this subsection referred to as the total cost ) is expressed to be payable in respect of the acquisition or construction of the whole of the property and no separate amount is allocated to the eligible property, the amount payable in respect of the acquisition or construction of the unit of eligible property shall, for the purposes of this Subdivision, be taken to be such part of the total cost as the Commissioner determines.
82AN(2) [Commissioner's power to reduce excessive costs]Where, under a contract for the acquisition or construction of eligible property or under a contract for the acquisition of materials for use in the construction of eligible property, an amount is expressed to be payable in respect of the acquisition or construction of the property or in respect of the acquisition of the materials, as the case may be, but the Commissioner is satisfied that that amount exceeds -
(a) in the case of a contract for the construction of eligible property for the taxpayer by another person or persons on premises of the taxpayer - the market value of the property at the time of completion of the construction; or
(b) in any other case - the market value of the eligible property or materials at the date of the contract,
the amount payable in respect of the acquisition or construction of the eligible property or in respect of the acquisition of the materials, as the case may be, shall, if the Commissioner so determines, be deemed, for the purposes of this Subdivision, to be the market value referred to in paragraph (a) or (b), whichever is applicable.
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