INCOME TAX ASSESSMENT ACT 1997
|CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION
Pt 2-15 (heading) substituted by No 66 of 2003.
Pt 2-15 inserted by No 121 of 1997.
|Division 58 - Capital allowances for depreciating assets previously owned by an exempt entity
|| View history reference
Div 58 substituted by No 77 of 2001, inserted by No 93 of 1999.
Subdiv 58-B substituted by No 77 of 2001.
The undeducted pre-existing audited book value of a *privatised asset is its *adjustable value in the hands of:
(a) the *transition entity just before the *transition time; or
(b) the *tax exempt vendor just before the *acquisition time;
worked out using the assumptions in this section.
Application of Division 40
Assume that Division 40 had always applied to work out the decline in value of the *privatised asset.
Use for taxable purposes
Assume that, in applying Division 40 to the *privatised asset, it had always been used by the *transition entity or the *tax exempt vendor wholly for *taxable purposes.
(a) the first element of the *privatised asset's *cost to the *transition entity or the *tax exempt vendor is its *pre-existing audited book value as at the latest time (the test time) at which it had a pre-existing audited book value; and
(b) no amount was included in the second element of the asset's cost before the test time; and
(c) any amount included in the second element of the asset's cost after the test time had been incurred by the transition entity or the tax exempt vendor.
Assume that the *transition entity or the *tax exempt vendor had acquired the *privatised asset at the test time.
(a) the *transition entity or the *tax exempt vendor had chosen to use an *effective life determined by the Commissioner for the *privatised asset as in force at the *transition time or the *acquisition time; and
(b) subsection 40-95(2) did not apply.
Section 40-102 does not apply to a privatised asset for the purposes of this section.
S 58-80(6) amended by No 53 of 2002.
Assume also that section 40-110 (about recalculating effective life) did not apply.
S 58-80 substituted by No 77 of 2001.