INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

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

Division 43 - Deductions for capital works  

Subdivision 43-F - Calculation of deduction  

Operative provisions

SECTION 43-220   Capital works taken to have begun earlier for certain purposes  

43-220(1)  
A building, other than a * hotel building or an * apartment building, or an extension, alteration or improvement to such a building, begun after 15 September 1987 is taken to have begun before 16 September 1987 if:


(a) the construction was under a contract that was entered into before 16 September 1987, or was under 2 or more contracts any of which was entered into before that date; or


(b) money was borrowed for a purpose that included the purpose of financing the construction under a contract or contracts entered into before 16 September 1987 by an entity that was, or by entities each of which was, a * qualifying investor, and that money was used to finance the construction.

43-220(2)  
An entity is a qualifying investor for the construction of a building if:


(a) at the end of 15 September 1987, the entity was the owner or lessee of the land on which the building was constructed; or


(b) the entity became the owner or lessee of the land under a contract entered into before 16 September 1987.

43-220(3)  
An entity is a qualifying investor for the construction of an extension, alteration or improvement to a building if:


(a) at the end of 15 September 1987, the entity was the owner or lessee of the building, or the part of the building to which the extension, alteration or improvement was made; or


(b) the entity became the owner or lessee of the building or that part under a contract entered into before 16 September 1987.


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