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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances    View history reference

Commissioner ' s Remedial Power

Note: A Commissioner ' s Remedial Power (CRP 2017/2) is relevant to this part of the tax law. Taxation Administration (Remedial Power - Small Business Restructure Roll-over) Determination 2017 (F2017L01687) modifies the operation of s 40-340 of the Income Tax Assessment Act 1997 and any other provisions of a taxation law whose operation is affected by the modified operation of s 40-340 in relation to an asset transferred under a small business restructure roll-over (item 8 of the table in s 40-340(1) ).

The operation of the relevant provisions is modified as follows:

If s 40-340 of ITAA 1997 provides for rollover relief in relation to a disposal of a depreciating asset because the condition in item 8 of the table in s 40-340(1) of ITAA 1997 is satisfied in relation to the asset, that section has effect as if it also provided that the disposal of the asset has no direct consequences under the income tax law (other than Div 40 of ITAA 1997).

The modification applies in respect of transfers on or after 8 May 2018.

An entity must treat a modification as not applying to it or any other entity if the modification would produce a less favourable result for it. The Commissioner is empowered by s 370-5 of Sch 1 to the Taxation Administration Act 1953 to make modifications, by legislative instrument, to ensure the law is administered to achieve its intended purpose or object.

Subdivision 40-K - Farm-in farm-out arrangements    View history reference

Guide to Subdivision 40-K

SECTION 40-1095  What this Subdivision is about  

 View history reference

The costs and termination values of parts of interests in mining, quarrying or prospecting rights that are transferred under farm-in farm-out arrangements are reduced by the market value of the exploration benefits conferred under the arrangements.


TABLE OF SECTIONS

Farm-in farm-out arrangements and exploration benefits
40-1100Meaning of farm-in farm-out arrangement and exploration benefit
Consequences for transferors
40-1105Treatment of certain exploration benefits received under farm-in farm-out arrangements
40-1110Cost of split interests resulting from farm-in farm-out arrangements
40-1115Deductions relating to receipt of exploration benefits
40-1120Cost base and reduced cost base of exploration benefits etc.
40-1125Effect of exploration benefits on the cost of mining, quarrying or prospecting information
Consequences for transferees
40-1130Consequences of certain exploration benefits provided under farm-in farm-out arrangements


 



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