S 396-85 repealed by No 41 of 2011, s 3 and Sch 5 item 158, effective 27 June 2011. S 396-85 formerly read:
SECTION 396-85 Conditions to be in all agreements
396-85(1)
All
*
land transport facilities borrowings agreements must include the following conditions:
(a)
that the facilities covered by the agreement will be used in accordance with subsection (2);
(b)
that the borrower and each of the lenders will do each of the things that they state in the agreement that they will do;
(c)
that the borrower will not do anything that:
(i)
will cause Division
250
of this Act to apply to any of the facilities concerned; or
(ii)
will cause section
51AD
of the Tax Act or Division
16D
of Part
III
of that Act to apply to any of the facilities concerned; or
(iii)
would have caused section
51AD
of the Tax Act or Division
16D
of Part
III
of that Act to apply to any of the facilities concerned if the amendments made by
Part 2 of Schedule 1
to the
Tax Laws Amendment (2007 Measures No. 5) Act 2007
had not been made;
(d)
that the
*
borrowings will only be used in the construction of the facilities or the construction or acquisition of
*
related facilities;
(e)
that the borrower will keep proper records in respect of all dealings by the borrower with the borrowed money;
(f)
that the borrower and each of the lenders will keep proper records in respect of the doing of all other things specified in the agreement (for example, in respect of things done in constructing any facility);
(g)
that the borrower and each of the lenders will inform the Commissioner of any breach of the agreement within 30 days of becoming aware of the breach;
(h)
that each of the lenders will, as soon as is practicable, inform the borrower of the amount of any tax offset to which the lender is entitled for a borrowing under the agreement.
History
S 396-85(1) amended by
No 164 of 2007
, s 3 and Sch 1 item 62, by substituting para (c), effective 25 September 2007. Para (c) formerly read:
(c)
that the borrower will not do anything that will cause section
51AD
of the
Income Tax Assessment Act 1936
or Division 16D of Part III of that Act to apply to any of the facilities concerned;
396-85(2)
A facility is used in accordance with this subsection if the borrower:
(a)
owns the facility (or holds a
*
quasi-ownership right granted by an *exempt Australian government agency over land to which the facility is attached); and
(b)
uses the facility principally for gaining or producing assessable income; and
(c)
effectively controls the use of the facility (other than by leasing it);
from the time that the facility is first used until the end of the last income year covered by the agreement.
S 396-85 inserted by No 16 of 1998.
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