INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
Subject to this Subdivision, where:
(a) a taxpayer has, under a contract entered into on or after 28 May 1981 and before 13 January 1983, expended capital moneys in producing, or by way of contribution to the cost of producing, a film;
(b) at the time when the moneys were expended:
(i) the taxpayer was a resident; and
(ii) a provisional certificate or a final certificate was in force in relation to the film;
(c) the Commissioner is satisfied that, at the time when the moneys were expended:
(i) the taxpayer expected to become the first owner, or one of the first owners, of the copyright in the film when that copyright came into existence; and
(ii) the taxpayer intended to use that copyright, or the taxpayer's interest in that copyright, as the case may be, for the purpose of producing assessable income from the exhibition of the film to the public in cinemas or by way of television broadcasting or from granting rights to exhibit the film to the public in cinemas or by way of television broadcasting;
(d) by reason of the moneys being expended, the taxpayer became the first owner, or one of the first owners, of the copyright in the film; and
(e) either of the following conditions is applicable:
(i) the taxpayer has used the copyright or the taxpayer's interest in the copyright, as the case may be, for the purpose of producing assessable income from the exhibition of the film to the public in cinemas or by way of television broadcasting or from granting rights to exhibit the film to the public in cinemas or by way of television broadcasting;
(ii) the taxpayer derived assessable income under an agreement entered into before the copyright came into existence under which the taxpayer agreed, upon the copyright coming into existence, to grant rights to another person to exhibit the film to the public in cinemas or by way of television broadcasting,
an amount equal to 150% of the amount of the moneys expended shall be allowed as a deduction in the assessment of the taxpayer in respect of income of:
(f) where, in the year of income in which the condition specified in paragraph (e) was first satisfied in relation to the taxpayer in relation to the copyright, the taxpayer became the first owner, or one of the first owners, of the copyright - that year of income; and
(g) in any other case:
(i) the year of income in which the condition specified in paragraph (e) was first satisfied in relation to the taxpayer in relation to the copyright; or
whichever is the later year of income.
(ii) the year of income in which the taxpayer became the first owner, or one of the first owners, of the copyright,
View history note
Hide history noteSubject to this Subdivision, where:
(a) a taxpayer has, under a contract entered into on or after 28 May 1981 and before 13 January 1983, expended capital moneys in producing, or by way of contribution to the cost of producing, a film;
(b) at the time when the moneys were expended:
(i) the taxpayer was a resident; and
(ii) a provisional certificate or a final certificate was in force in relation to the film;
(c) the Commissioner is satisfied that, at the time when the moneys were expended:
(i) the taxpayer expected to become the first owner, or one of the first owners, of the copyright in the film when that copyright came into existence; and
(ii) the taxpayer intended to use that copyright, or the taxpayer's interest in that copyright, as the case may be, for the purpose of producing assessable income from the exhibition of the film to the public in cinemas or by way of television broadcasting or from granting rights to exhibit the film to the public in cinemas or by way of television broadcasting;
(d) the taxpayer died before copyright in the film came into existence; and
(e) either of the following conditions is satisfied:
(i) before the taxpayer died, the taxpayer derived assessable income under an agreement under which the taxpayer agreed, upon the copyright coming into existence, to grant rights to another person to exhibit the film to the public in cinemas or by way of television broadcasting;
(ii) the Commissioner is satisfied that, if the taxpayer had not died:
(A) the taxpayer would have become the first owner, or one of the first owners, of the copyright in the film by reason of the moneys having been expended; and
(B) the taxpayer would have used that copyright or the taxpayer's interest in that copyright for the purpose of producing assessable income from the exhibition of the film to the public in cinemas or by way of television broadcasting or from granting rights to exhibit the film to the public in cinemas or by way of television broadcasting,
an amount equal to 150% of the amount of the moneys expended shall be allowed as a deduction in the assessment of the taxpayer in respect of the income of the year of income in which the taxpayer died.
(a) a taxpayer has, under a contract entered into on or after 13 January 1983, expended capital moneys (in this subsection referred to as the relevant moneys ) in producing, or by way of contribution to the cost of producing, a film;
(b) the film had commenced to be produced before 13 January 1983 and was in production on that date;
(c) capital moneys were first expended (whether by the taxpayer or by another person) in producing, or by way of contribution to the cost of producing, the film in the financial year that ended on 30 June 1982 or in a preceding financial year;
(d) but for the words and before 13 January 1983 in paragraphs (1)(a) and (2)(a), the taxpayer would have been entitled under subsection (1) or (2) to a deduction in respect of the relevant moneys in an assessment in respect of a year of income; and
(e) the taxpayer is not entitled to a deduction under section 124ZAFA in respect of the relevant moneys,
an amount equal to:
(f) where the relevant moneys were expended by the taxpayer under a contract entered into on or before 23 August 1983 - 150%;
(g) where the relevant moneys were expended by the taxpayer under a contract that was entered into after 23 August 1983 and on or before 19 September 1985 - 133%; or
(h) where the relevant moneys were expended by the taxpayer under a contract that was entered into after 19 September 1985 - 120%,
of the amount of the relevant moneys shall be allowed as a deduction in the assessment of the taxpayer in respect of income of the year of income referred to in paragraph (d).
Where the Commissioner is satisfied that, if subsections (1) and (2) applied in relation to the expenditure of capital moneys under contracts entered into on or after 1 October 1980, an amount would be, or would become, allowable as a deduction to a taxpayer in a year of income under subsection (1) or (2) in respect of capital moneys expended by the taxpayer under a contract entered into on or after 1 October 1980 and on or before 27 May 1981, that amount shall be allowed as a deduction in the assessment of the taxpayer in respect of income of the year of income in which the moneys were expended.
124ZAF(4) [Reference to relevant amount in s 124ZAG]In determining for the purposes of subsection (3) whether an amount would be, or would become, allowable as a deduction to a taxpayer in a year of income under subsection (1) or (2) if those subsections applied in relation to the expenditure of capital moneys under contracts entered into on or after 1 October 1980, section 124ZAG shall be read as if references in that section to the relevant amount referred to in that section being expended in producing a film were references to the relevant amount being expended in producing the film before the expiration of the period of 12 months after the end of the year of income in which the relevant amount was expended by the taxpayer.
124ZAF(5) [Moneys deemed expended at later time]For the purposes of the application of section 124ZAG in accordance with subsection (4), where:
(a) moneys are expended in producing a film; and
(b) having regard to the benefit in respect of which those moneys are expended, those moneys, or a part of those moneys, could reasonably be expected to have been expended at a later time,
those moneys, or that part of those moneys, as the case may be, shall be taken to have been expended at that later time.
124ZAF(6) [Allowable deduction in lieu of relevant deduction](a) by reason that the Commissioner was satisfied that, if subsections (1) and (2) applied in relation to the expenditure of capital moneys under contracts entered into on or after 1 October 1980, an amount would be, or would become, allowable as a deduction to a taxpayer under subsection (1) or (2) in respect of capital moneys expended by the taxpayer, a deduction (in this subsection referred to as the relevant deduction ) has been allowed to the taxpayer under subsection (3) in respect of the expenditure of those moneys; and
(b) the Commissioner later becomes satisfied that, if subsections (1) and (2) applied as mentioned in paragraph (a):
(i) no deduction would be, or would become, allowable to the taxpayer under subsection (1) or (2) in respect of the expenditure of those moneys; or
(ii) the amount of the deduction that would be, or would become, allowable to the taxpayer under subsection (1) or (2) in respect of the expenditure of those moneys would be greater than or less than the amount of the relevant deduction;
the relevant deduction shall be deemed never to have been allowable or, as the case requires, the greater or lesser deduction referred to in paragraph (b) shall be deemed to have been allowable under subsection (3) in lieu of the relevant deduction.
124ZAF(7) [Assessable income]In this section, a reference to assessable income includes a reference to amounts that, but for section 23H , would be assessable income.
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