Income Tax Assessment 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-B - Core provisions  

Operative provisions

SECTION 40-140   Getting tax information from associates  

40-140(1)  
If you acquire a * depreciating asset from an * associate of yours where the associate has deducted or can deduct an amount for the asset under this Division, you may give the associate a written notice requiring the associate to tell you:


(a) the method the associate was using to work out the decline in value of the asset; and


(b) the * effective life the associate was using; and


(c) if section 40-102 applied to the asset at any time:


(i) the effective life that the associate would have used if section 40-102 had not applied to the asset; and

(ii) the relevant time that applied to the associate under subsection 40-102(3) .

40-140(2)  
The notice must:


(a) be given within 60 days of your acquiring the asset; and


(b) specify a period of at least 60 days within which the information must be given; and


(c) set out the effect of subsection (3).

Note:

Subsections (4) and (5) explain how this subsection operates if the associate is a partnership.

Requirement to comply with notice

40-140(3)  
The * associate must not intentionally refuse or fail to comply with the notice.

Penalty: 10 penalty units.

Giving the notice to a partnership

40-140(4)  
If the * associate is a partnership:


(a) you may give it to the partnership by giving it to any of the partners (this does not limit how else you can give it); and


(b) the obligation to comply with the notice is imposed on each of the partners (not on the partnership), but may be discharged by any of them.

40-140(5)  
A partner must not intentionally refuse or fail to comply with that obligation, unless another partner has already complied with it.

Penalty: 10 penalty units.

Limits on giving a notice

40-140(6)  
Only one notice can be given in relation to the same * depreciating asset.


 

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