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INCOME TAX ASSESSMENT ACT 1997 - SECT 25.115

Deduction for payment of rent from land investment by operating entity to asset entity in relation to approved economic infrastructure facility

             (1)  An entity that is an * operating entity in relation to a * cross staple arrangement can deduct an amount, for an income year, of * rent from land investment if:

                     (a)  another entity derives or receives the amount from the operating entity:

                              (i)  in the income year; and

                             (ii)  on or after 27 March 2018; and

                     (b)  the cross staple arrangement was entered into in relation to:

                              (i)  a facility that is covered by section 12-439 in Schedule 1 to the Taxation Administration Act 1953 at a time in the income year; or

                             (ii)  an improvement to a facility that is covered by that section at a time in the income year; and

                     (c)  the other entity is an * asset entity in relation to the cross staple arrangement; and

                     (d)  apart from this subsection, the operating entity could otherwise deduct the amount under this Act; and

                     (e)  the amount is * excepted MIT CSA income of the asset entity for the income year; and

                      (f)  each entity that is a * stapled entity in relation to the cross staple arrangement has made a choice in accordance with subsection (3).

             (2)  If the * asset entity is not a * managed investment trust in relation to the income year, for the purposes of paragraph (1)(e), treat it as a managed investment trust in relation to the income year.

             (3)  An entity makes a choice in accordance with this subsection if:

                     (a)  the entity makes the choice in the * approved form; and

                     (b)  the entity makes the choice before:

                              (i)  the start of the income year in which the asset is first put to use; or

                             (ii)  a later time allowed by the Commissioner; and

                     (c)  the entity gives the choice to the Commissioner within 60 days after the entity makes the choice.

             (4)  The choice cannot be revoked.



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