Commonwealth Consolidated Acts

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INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 40.287

Disposal of pre-1 July 2001 mining depreciating asset to associate

             (1)  This section applies if:

                     (a)  on or after 1 July 2001, a company (the transferor ) disposes of a depreciating asset to another company; and

                     (b)  the companies are members of the same linked group at the time of the disposal; and

                     (c)  apart from this section, the disposal would have resulted in:

                              (i)  an amount (the included amount ) being included in the assessable income of the transferor under subsection 40-285(1) of the Income Tax Assessment Act 1997 ; and

                             (ii)  the transferor having an additional decline in value (the deductible amount ) under subsection 40-35(5), 40-38(5) or 40-40(4) of this Act; and

                     (d)  the included amount is more than the deductible amount.

             (2)  Subsection 40-35(5), 40-38(5) or 40-40(4) of this Act does not apply to the disposal.

             (3)  The amount that is included in the transferor's assessable income under subsection 40-285(1) of the Income Tax Assessment Act 1997 is the included amount reduced by the deductible amount.



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