Income Tax (Transitional Provisions) Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances  

Subdivision 40-D - Balancing adjustments  

SECTION 40-288   Disposal of pre-1 July 2001 mining non-depreciating asset to associate  

40-288(1)    
This section applies if:

(a) on or after 1 July 2001, a company (the transferor ) disposes of property that is not 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 the transferor having an additional decline in value (the deductible amount ) under subsection 40-35(5) , 40-37(5) , 40-40(4) or 40-43(4) of this Act; and

(d) the sum of:

(i) the money the transferor receives, or is entitled to receive, in respect of the disposal; and

(ii) the market value of any other property the transferor receives, or is entitled to receive, in respect of the disposal;

is more than the deductible amount.

40-288(2)    
There is no additional decline in value of the notional asset referred to in subsection 40-35(5) , 40-37(5) , 40-40(4) or 40-43(4) as a result of the disposal.

40-288(3)    
Any amount that would be included in the transferor's assessable income under subsection 40-35(6) , 40-37(6) , 40-38(6) , 40-40(5) or 40-43(5) of this Act, or subsection 40-830(6) of the Income Tax Assessment Act 1997 , as a result of the disposal is reduced by the deductible amount.