INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision C - Deductions for expenditure on environmental impact studies  

SECTION 82BB   DEDUCTION OF ALLOWABLE ENVIRONMENTAL IMPACT EXPENDITURE  

82BB(1A)   [No deductions from 1998/99 year onwards]  

This section does not allow a deduction for the 1998-99 year of income or a later year of income.

Note:

Subdivision 400-A of the Income Tax Assessment Act 1997 allows deductions for the 1998-99 year of income and later years of income for allowable environmental impact expenditure.

82BB(1)   [Allowable deductions]  

Subject to this Subdivision, if a taxpayer incurs allowable environmental impact expenditure during a year of income (in this section called the current year of income ) in connection with an income-producing project of the taxpayer, then:


(a) if:


(i) a decision is made before the end of the current year of income to abandon the project; or

(ii) the project ends before the end of the current year of income;
the expenditure is an allowable deduction for the current year of income; or


(b) if it is not practicable to readily estimate, as at the end of the current year of income, the time when the project will end - 10% of the expenditure is an allowable deduction for:


(i) the current year of income; and

(ii) each of the 9 subsequent years of income; or


(c) if:


(i) none of the above paragraphs apply; and

(ii) it is practicable to readily estimate, as at the end of the current year of income, the year of income (in this paragraph called the final year of income ) in which the end of the project will occur; and

(iii) the final year of income is one of the 9 years of income subsequent to the current year of income;
equal parts of the expenditure are respectively allowable deductions for:

(iv) the current year of income; and

(v) the final year of income; and

(vi) each of the intervening years of income (if any); or


(d) if:


(i) none of the above paragraphs apply; and

(ii) it is practicable to readily estimate, as at the end of the current year of income, the year of income (in this paragraph called the final year of income ) in which the end of the project will occur; and

(iii) the final year of income is later than the 9th year of income subsequent to the current year of income;
10% of the expenditure is an allowable deduction for:

(iv) the current year of income; and

(v) each of the 9 subsequent years of income.

82BB(2)   [Restriction of operation]  

A provision of this Act that expressly prevents or restricts the operation of section 8-1 of the Income Tax Assessment Act 1997 applies in the same way to this section.


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