INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

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

Division 45 - Disposal of leases and leased plant  

SECTION 45-1   What this Division is about  


This Division is designed to prevent tax being avoided through:

  • (a) the disposal of leased plant, or an interest in leased plant; or
  • (b) the disposal of a partnership interest in a partnership that leased plant; or
  • (c) the disposal of shares in a 100% subsidiary that leased plant;
  • where amounts have been deducted for the decline in value of the plant.

    It includes amounts in assessable income. Any benefit received, and any reduction in a liability, is taken into account in calculating the amounts included.

    Where the disposal of shares in a 100% subsidiary is involved, the companies in the former wholly-owned group may be made jointly and severally liable for tax that the former subsidiary does not pay.


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