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INCOME TAX ASSESSMENT ACT 1997 - SECT 40.650

Amounts you cannot deduct under this Subdivision

             (1)  You cannot deduct amounts for capital expenditure you incur on * connecting power to land or upgrading the connection if, during the 12 months after electricity is first supplied to the land as a result of the expenditure, no electricity supplied as a result of the expenditure is used in carrying on a * business on the land for a * taxable purpose.

             (2)  If you deducted an amount for any income year under this Subdivision for the expenditure, your assessment for that income year may be amended under section 170 of the Income Tax Assessment Act 1936 to disallow the deduction.

             (3)  You cannot deduct an amount for capital expenditure you incur on * connecting power to land or upgrading the connection for:

                     (a)  expenditure in providing water, light or power for use on, access to or communication with the site of * mining and quarrying operations; or

                     (b)  a contribution to the cost of providing water, light or power for those operations.

             (4)  You cannot deduct an amount for any income year for your capital expenditure on a part of a telephone line if:

                     (a)  any entity has deducted, or can deduct, an amount for any income year for the cost of that part under a provision of this Act (except this Subdivision); or

                     (b)  the cost of that part has been, or must be, taken into account in working out:

                              (i)  the amount of any entity's deduction (including a deduction for a * depreciating asset) for any income year under a provision of this Act (except this Subdivision); or

                             (ii)  the net income, or partnership loss, of a partnership under section 90 of the Income Tax Assessment Act 1936 .

             (5)  However, you can deduct an amount under this Subdivision for your expenditure on a part of a telephone line even if:

                     (a)  an entity that worked on installing that part has deducted, or can deduct, an amount relating to that part for any income year under this Act (except this Subdivision); or

                     (b)  the cost of that part has been, or must be, taken into account:

                              (i)  in working out the amount of such an entity's deduction for any income year under a provision of this Act (except this Subdivision); or

                             (ii)  under section 90 of the Income Tax Assessment Act 1936 in working out the net income, or partnership loss, of a partnership that worked on installing that part.

             (6)  Subsection (5) has effect whether the entity did the work itself or through one or more employees or * agents.

             (7)  If you can deduct, or have deducted, an amount for any income year under section 40-645 for your expenditure:

                     (a)  an entity cannot deduct an amount for any income year under a provision of this Act (except this Subdivision) for the expenditure; and

                     (b)  the expenditure cannot be taken into account to work out the amount of an entity's deduction for any income year under a provision of this Act (except this Subdivision).

             (8)  Subsection (7) also applies in working out the net income, or partnership loss, of a partnership under section 90 of the Income Tax Assessment Act 1936 .



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