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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-B - Core provisions    View history reference

Operative provisions

SECTION 40-140  Getting tax information from associates  

 View history reference [No equivalent]

40-140(1)  

If you acquire a * depreciating asset from an * associate of yours where the associate has deducted or can deduct an amount for the asset under this Division, you may give the associate a written notice requiring the associate to tell you:


(a) the method the associate was using to work out the decline in value of the asset; and


(b) the * effective life the associate was using; and


(c) if section 40-102 applied to the asset at any time:

(i) the effective life that the associate would have used if section 40-102 had not applied to the asset; and

(ii) the relevant time that applied to the associate under subsection 40-102(3) .
 View history reference

40-140(2)  

The notice must:


(a) be given within 60 days of your acquiring the asset; and


(b) specify a period of at least 60 days within which the information must be given; and


(c) set out the effect of subsection (3).

Note:

Subsections (4) and (5) explain how this subsection operates if the associate is a partnership.

Requirement to comply with notice

40-140(3)  

The * associate must not intentionally refuse or fail to comply with the notice.

Penalty: 10 penalty units.

Giving the notice to a partnership

40-140(4)  

If the * associate is a partnership:


(a) you may give it to the partnership by giving it to any of the partners (this does not limit how else you can give it); and


(b) the obligation to comply with the notice is imposed on each of the partners (not on the partnership), but may be discharged by any of them.

40-140(5)  

A partner must not intentionally refuse or fail to comply with that obligation, unless another partner has already complied with it.

Penalty: 10 penalty units.

Limits on giving a notice

40-140(6)  

Only one notice can be given in relation to the same * depreciating asset.


 



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