Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 40.1110

Cost of split interests resulting from farm - in farm - out arrangements

    Despite section   40 - 205, if:

  (a)   under a * farm - in farm - out arrangement, you provide a part of your interest in a * mining, quarrying or prospecting right; and

  (b)   because of subsection   40 - 115(2), this Division applies as if you had split your interest into the part you stopped * holding and the rest of your interest;

then:

  (c)   the first element of the * cost of the asset that consists of the part you stopped holding is a reasonable proportion of the amount you are taken to have paid under section   40 - 185 for any economic benefit involved in splitting your interest; and

  (d)   the first element of the cost of the asset that consists of the rest of your interest is the sum of:

  (i)   the * adjustable value of your interest just before it was split; and

  (ii)   a reasonable proportion of the amount you are taken to have paid under section   40 - 185 for any economic benefit involved in splitting your interest.


AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback