INCOME TAX ASSESSMENT ACT 1936

PART III - LIABILITY TO TAXATION  

Division 16D - Certain arrangements relating to the use of property  

SECTION 159GH   APPLICATION OF DIVISION IN RELATION TO PROPERTY  

159GH(1A)   [ Tax preferred use post-1 July 2007]  

This Division does not apply in relation to the item of eligible property that is put to a tax preferred use (within the meaning of the Income Tax Assessment Act 1997 ) if the tax preferred use:


(a) starts on or after 1 July 2007; and


(b) does not occur under a legally enforceable arrangement entered into before 1 July 2007.

159GH(1B)   [ Tax preferred use arrangement pre-1 July 2007]  

This Division does not apply in relation to the item of eligible property that is put to a tax preferred use (within the meaning of the Income Tax Assessment Act 1997 ) if:


(a) the tax preferred use starts on or after 1 July 2007; and


(b) the tax preferred use occurs under a legally enforceable arrangement that was entered into before 1 July 2007; and


(c) an election is made under item 71 of Schedule 1 to the Tax Laws Amendment (2007 Measures No. 5) Act 2007 to have subitem 71(2) of that Schedule apply to the property.

159GH(1)   [Use by exempt public body or overseas use]  

Subject to subsections (1A), (1B) and (2), where;


(a) at a particular time (in this subsection referred to as the " relevant time " ) an arrangement is a qualifying arrangement under subsection 159GG(1) or (2) in relation to an item of eligible property; and


(b) either of the following conditions is satisfied:


(i) the qualifying arrangement was entered into after 5 o'clock in the afternoon, by standard time in the Australian Capital Territory, on 15 May 1984 and the end-user referred to in subsection 159GG(1) or (2) is an exempt public body;

(ii) the arrangement was entered into after 5 o'clock in the afternoon, by legal time in the Australian Capital Territory, on 16 December 1984 and the use of the property referred to in subsection 159GG(1) or (2) takes place, or will take place, outside Australia and is, or will be, wholly or partly for the purpose of producing exempt income,

this Division applies in relation to the item of eligible property at the relevant time.

159GH(2)   [Leveraged arrangements]  

This Division does not apply in relation to an item of eligible property at a particular time if at that time section 51AD applies to the item of eligible property in relation to a taxpayer.


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