Division 3 - Deductions  

Subdivision A - General  


62(1A)   [Commercial debt forgiveness]  

This section has effect subject to Division 245 of Schedule 2C .

62(1)   [``depreciated value'']  

In this Division, ``depreciated value'' of any unit of property at any time means the cost of the unit to the person who owns or owned the property at that time less the total amount of depreciation (if any) allowed or allowable in respect of that unit in assessments of the income of that person, for any period prior to that time, under this Act or any previous law of the Commonwealth.

62(2)   [Cost where acquisition of depreciated property]  

For the purposes of subsection (1), in any case in which section 60 , or the corresponding provision of the previous Act, applied or applies in relation to any unit of property, the person who acquired or acquires the unit shall be deemed to have acquired or to acquire it at a cost equal to the depreciated value of the unit immediately prior to the time of the acquisition, or, if the case is one in which the proviso to subsection (1) of that section applied or applies, the sum of that depreciated value and the amount required to be added to that depreciated value for the purposes of that proviso.

62(3)   [Where parties not at arm's length]  

For the purposes of the application of subsection (1) in relation to a person in relation to a unit of property in a case where:

(a) subsection (2) does not apply in relation to that person in relation to that unit;

(b) the amount that, but for this subsection and section 57AF , would be the cost of the unit for the purposes of subsection (1) is attributable, in whole or in part, to a transaction to which that person was a party;

(c) the Commissioner is satisfied that, having regard to any connection between any 2 or more of the parties to the transaction and to any other relevant circumstances, those parties were not dealing with each other at arm's length in relation to the transaction; and

(d) the Commissioner is satisfied that the amount that, but for this subsection and section 57AF , would be the cost of the unit for the purposes of subsection (1) is greater than the amount (in this subsection referred to as the ``arm's length amount'' ) that would have been the cost of the unit if the parties to the transaction had dealt with each other at arm's length in relation to the transaction,

the arm's length amount shall, subject to section 57AF , be deemed to be the cost of that unit to that person for the purposes of subsection (1).


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