INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10AA - Prospecting and mining for petroleum  

SECTION 124AN   DOUBLE DEDUCTIONS  

124AN(1)   [No double deduction]  

Where the whole or a part of expenditure of a capital nature incurred by a taxpayer has been allowed or is or may become allowable as a deduction under this Division, no part of that expenditure shall be an allowable deduction, or be taken into account in ascertaining the amount of an allowable deduction, from the assessable income of the taxpayer of any year of income under a provision of this Act other than this Division.

124AN(2)   [Change in use of property]  

Subsection (1) does not prevent a deduction being allowed to a taxpayer under a provision of this Act other than this Division in respect of a unit of property the use of which by the taxpayer in carrying on prescribed petroleum operations, or in exploring or prospecting for petroleum, has been terminated and, where such a unit of property is used by the taxpayer for the purpose of gaining or producing assessable income other than assessable income from petroleum, then, for the purposes of sections 56 and 62 and Division 10 and notwithstanding subsection 122C(2) or 122DA(2) :

(a) the unit shall be deemed to have been acquired by the taxpayer at a cost equal to the amount that, in the opinion of the Commissioner, was the value of the unit at the date on which it commenced to be used for that purpose; and

(b) no part of the cost of the unit shall be taken to have been allowed or to be allowable under this Division as a deduction from the assessable income of the taxpayer of any year of income.

124AN(3)   [Deemed deduction]  

For the purposes of subsection (1), an amount that would have been allowed or allowable as a deduction under this Division but for the operation of subsection 124AD(3) , 124ADB(3) , 124ADD(3) , 124ADF(3) , 124ADG(6) , 124AF(1) , 124AH(2) or (4A) or 124AM(4) shall be deemed to have been allowed or to be allowable as such a deduction.