INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances  

Subdivision 40-K - Farm-in farm-out arrangements  

Consequences for transferors

SECTION 40-1120   40-1120   Cost base and reduced cost base of exploration benefits etc.  


If:


(a) under a *farm-in farm-out arrangement, you receive an *exploration benefit; and


(b) the benefit involves one or more undertakings of the kinds referred to in subparagraphs 40-1100(2)(a)(ii) and (iv);

the first element of the *cost base and the *reduced cost base of the benefit are reduced by the *market value of the undertakings.


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