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Edited version of your written advice
Authorisation Number: 1012781537720
Ruling
Subject: Income tax treatment for replacement of parts of depreciating assets
Question 1
Is Company X entitled to deductions under section 25-10 of the Income tax Assessment Act 1997 for the amounts incurred by Company Y for conducting and completing the Works pursuant to the agreements?
Answer
Yes
Question 2
Is the amount received pursuant to the agreements included in the assessable income of Company X under section 6-5 of the Income Tax Assessment Act 1997?
Answer
No
Question 3
Is the amount received pursuant to the agreements included in the assessable income of Company X under section 15-10 of the Income Tax Assessment Act 1997?
Answer
Yes
Question 4
Is the amount received pursuant to the agreements included in the assessable income of Company X under Subdivision 20-A of the Income Tax Assessment Act 1997?
Answer
No
This ruling applies for the following periods:
2015 financial year
2016 financial year
2017 financial year
2018 financial year
The scheme commences in:
2014
The Commissioner has ruled on each of the questions.