Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 376 - Films generally (tax offsets for Australian production expenditure)  

Subdivision 376-C - Production expenditure and qualifying Australian production expenditure  

Expenditure generally - common rules

SECTION 376-180   Expenditure incurred by prior production companies  

376-180(1)  
For the purposes of this Division, if a company (the incoming company ) takes over the * making of a * film from another company (the outgoing company ):


(a) expenditure incurred in relation to the film by the outgoing company is taken to have been incurred in relation to the film by the incoming company; and


(b) for the purposes of determining the extent to which that expenditure is * qualifying Australian production expenditure of the incoming company, the incoming company is taken:


(i) to have been an Australian resident at any time when the outgoing company was an Australian resident; and

(ii) to have had a * permanent establishment in Australia at any time when the outgoing company had a permanent establishment in Australia; and

(iii) to have had an * ABN at any time when the outgoing company had an ABN; and


(c) expenditure that the incoming company incurs in order to be able to take over the making of the film is to be disregarded for the purposes of this Division; and


(d) any activities carried out, and arrangements made, by the outgoing company in relation to the film are taken, for the purposes of paragraphs 376-20(5)(c) , 376-45(5)(b) and 376-65(1)(a) , to have been carried out or made by the incoming company in relation to the film.

376-180(2)  
For the purposes of subsection (1):


(a) expenditure incurred on the * film by the outgoing company includes expenditure that the outgoing company is itself taken to have incurred on the film because of the operation of subsection (1); and


(b) the outgoing company is taken:


(i) to have been an Australian resident at any time when the outgoing company is taken to have been an Australian resident because of the operation of subsection (1); and

(ii) to have had a * permanent establishment in Australia at any time when the outgoing company is taken to have had a permanent establishment in Australia because of the operation of subsection (1); and

(iii) to have had an * ABN at any time when the outgoing company is taken to have had an ABN because of the operation of subsection (1); and


(c) activities carried out by the outgoing company in relation to the film include activities that the outgoing company is taken to have carried out in relation to the film because of the operation of subsection (1); and


(d) arrangements made by the outgoing company for the carrying out of activities in relation to the film include arrangements that the outgoing company is taken to have made because of the operation of subsection (1).

Example:

If Uncle Carty Ltd starts out making a film and then Mr Grouble Ltd takes over the making of the film, Mr Grouble Ltd is taken to have incurred the expenditure that Uncle Carty Ltd incurred on the film. If Lousie Ltd subsequently takes over the making of the film from Mr Grouble Ltd, Lousie Ltd is taken to have incurred the expenditure that Mr Grouble Ltd incurred on the film (including the expenditure of Uncle Carty Ltd that is attributed to Mr Grouble Ltd).


 

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