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Edited version of your private ruling
Authorisation Number: 1012367875416
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Ruling
Subject: assessability of a government grant
Question 1
With regard to a government grant, did the Service Trust funding applicant merely act as agent for the Property Trust with the latter being the actual beneficial recipient of the funding for taxation purposes?
Answer
Yes.
Question 2
Is the grant paid by the government via the Service Trust to the Property Trust considered assessable income of the Property trust under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
No.
Question 3
Is the grant paid by the government via the Service Trust to the Property Trust considered assessable income of the Property trust under section 15-10 of the ITAA 1997?
Answer
No.
Question 4
If the cost of a depreciating asset is deductible over two or more years under Division 40 of the ITAA 1997, will section 20-40 of the ITAA 1997 operate such that the total of assessable recoupments to be included in assessable income in a particular year will equal the total amount of the depreciation deduction claimed in that year?
Answer
Yes. However, expenditure incurred under Division 43 of the ITAA 1997 is excluded from the Subdivision 20-A assessable recoupment provisions.
Question 5
Is the grant paid by the government via the Service Trust to the Property Trust considered assessable income of the Property Trust under the capital gains tax (CGT) provisions of the ITAA 1997?
Answer
No.
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