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Edited version of administratively binding advice
Authorisation Number: 1012587002399
Ruling
Subject: Deductions in regard to construction expenditure
The Commissioner was asked to rule on the following question:
If the trust assigns the sub-lease it holds over the area of land on which the facility is located to a third party entity (New Entity) separate from the group, will the New Entity be entitled to claim deductions pursuant to Division 43 of the ITAA 1997 in respect of construction expenditure on the facility capital works incurred by the original sub-lessee after 26 February 1992?
The Commissioner ruled:
Yes. If the trust assigns the sub-lease it holds over the area of land on which the facility is located to a third party entity (New Entity) separate from the group, the New Entity will be entitled to claim deductions pursuant to Division 43 of the ITAA 1997 in respect of construction expenditure on the facility capital works incurred by the original sub-lessee after 26 February 1992.