Income Tax (Transitional Provisions) 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-D - Balancing adjustments  

SECTION 40-287   Disposal of pre-1 July 2001 mining depreciating asset to associate  

40-287(1)    
This section applies if:

(a) on or after 1 July 2001, a company (the transferor ) disposes of a depreciating asset to another company; and

(b) the companies are members of the same linked group at the time of the disposal; and

(c) apart from this section, the disposal would have resulted in:

(i) an amount (the included amount ) being included in the assessable income of the transferor under subsection 40-285(1) of the Income Tax Assessment Act 1997 ; and

(ii) the transferor having an additional decline in value (the deductible amount ) under subsection 40-35(5) , 40-38(5) or 40-40(4) of this Act; and

(d) the included amount is more than the deductible amount.

40-287(2)    
Subsection 40-35(5) , 40-38(5) or 40-40(4) of this Act does not apply to the disposal.

40-287(3)    
The amount that is included in the transferor's assessable income under subsection 40-285(1) of the Income Tax Assessment Act 1997 is the included amount reduced by the deductible amount.