INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 4 - Leases  

SECTION 88A   CROWN LEASES OF LAND USED FOR PRIMARY PRODUCTION  

88A(1)   [Provisions of other sections]  

Except as provided in this section, the provisions of sections 84 , 85 , 86 , 87 and 88 shall not apply to a lease from the Crown of land used for primary production.

88A(2)   [Lease assigned before 1 July 1936]  

Where a lease from the Crown of land used for primary production has been assigned prior to the beginning of the first year to the income of which this Act applies and more than one premium in respect of that assignment is payable, the assignor shall be subject to the same liability to tax, and the assignee shall be entitled to the same right of deduction, in respect of any premiums paid during that or any subsequent year, as they would have been if this section had not been enacted.

88A(3)   [Previous deductions]  

Where after the beginning of the first year to the income of which this Act applies a taxpayer assigns a lease from the Crown of land used for primary production, and the taxpayer has been allowed any deduction under this Act or any previous law of the Commonwealth in respect of that lease, if the premium or sum of the premiums for or in connexion with that assignment together with all deductions so allowed, exceeds the premium or sum of the premiums paid by him for the lease, together with the expenses directly incurred by him in effecting that assignment (which expenses shall not otherwise be an allowable deduction), the excess, to an amount not exceeding the sum of those deductions, (in this section called the assessable amount ) shall be taken into account in the following manner:


(a) Where the whole premium (or sum of the premiums, as the case may be) is received by him in the year of income - the whole of the assessable amount shall be included in his assessable income.


(b) Where part only of the sum of the premiums is received by him in the year of income - a proportionate part of the assessable amount shall be included in his assessable income.

88A(4)   [Premium payments before 1 January 1937]  

Where a taxpayer, who in the year of income is the lessee from the Crown of land used for primary production for the purpose of producing assessable income, has, prior to 1 January 1937, paid any premium for or in connexion with the assignment to him of the lease, a proportionate part of the amount of that premium, arrived at by distributing that amount proportionately over the period of the lease unexpired at the date when the premium was paid, shall be an allowable deduction.

88A(5)   [Required improvements before 1 January 1937]  

Where a taxpayer, who in the year of income is the lessee from the Crown of land used for primary production for the purpose of producing assessable income, has incurred expenditure in making improvements, not subject to tenant rights which, prior to 1 January 1937, he was required to make under the provisions of the lease, a proportionate part of the amount of that expenditure, arrived at by distributing that amount proportionately over the period of the lease unexpired at the date when the expenditure was incurred, shall be an allowable deduction. In calculating the deduction under this subsection, expenditure in excess of the amount, if any, specified in the lease shall not be taken into account.

88A(6)   [Succession to lease]  

Where, upon the death of any person, a taxpayer succeeds to any lease from the Crown of land used for primary production, or any share therein, the following provisions shall apply:


(a) In ascertaining the assessable amount for the purposes of subsection (3) -


(i) any premium paid by the deceased person for the lease, or part thereof proportionate to the taxpayer's share in the lease; or

(ii) any deduction allowed to the deceased person under this Act or under any previous law of the Commonwealth in respect of that lease, or part thereof proportionate to the taxpayer's share in the lease,
shall be taken into account as if the premium (or the part thereof) had been paid by or the deduction (or the part thereof) had been allowed to the taxpayer.


(b) Where the deceased person had paid any premium as specified in subsection (4) or incurred any expenditure as specified in subsection (5), the taxpayer shall be entitled to the same deduction, or part thereof proportionate to his share in the lease, as the deceased person would have been entitled to under this section had he lived.


 

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