Draft Taxation Determination
TD 92/D213
Income tax: is a taxpayer who has purchased stolen property for use as income-producing plant entitled to deductions for depreciation and for loss on disposal when the plant is repossessed?
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Please note that the PDF version is the authorised version of this draft ruling.This document has been Withdrawn.View the Withdrawal notice for this document.
FOI status:
draft only - for commentPreamble
| Draft Taxation Determinations (TDs) represent the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO. |
1. No. Deductions for depreciation and loss on disposal of the plant are not allowable.
2. Section 54 allows a deduction for depreciation only if the taxpayer owns the plant. Although the property is in the taxpayer's possession, the owner of the property is the person from whom it was stolen.
3. Section 59 cannot apply to allow a balancing charge deduction if section 54 does not apply to allow a deduction for depreciation of the plant.
Commissioner of Taxation
12/11/92
This Draft Determination has been withdrawn by TD 92/D213W.
References
ATO references:
NO D/92/0023/Par
Subject References:
depreciation
theft
plant
balancing charge