INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10D - Deductions for capital expenditure on certain buildings and structural improvements  

SECTION 124ZJ   REDUCTION OF DEDUCTIONS  

124ZJ(1)   [Fair and reasonable reduction by Commissioner]  

Where:

(a) apart from this subsection, a deduction would be allowable to a taxpayer under section 124ZH in respect of an amount of qualifying expenditure in relation to the use of the prescribed part or a part (in this subsection referred to as the relevant part ) of the prescribed part during a year of income or a part of a year of income; and

(b) during the whole or a part of the year of income, or of that part of the year of income, as the case may be:

(i) any part of the prescribed part or of the relevant part, as the case may be, was not used for the purpose of producing assessable income or carrying on research and development activities; or

(ii) the prescribed part or the relevant part, as the case may be, was used by the taxpayer only partly for the purpose of producing assessable income or carrying on research and development activities,

the amount of the deduction shall be reduced by such amount as the Commissioner considers fair and reasonable.

124ZJ(2)   [Destruction of eligible building]  

Where:

(a) by reason of the destruction of an eligible building or a part of an eligible building, a deduction (in this subsection referred to as the relevant deduction ) is allowable in respect of so much of the residual capital expenditure in relation to an amount of qualifying expenditure in respect of the eligible building as is attributable to the prescribed part or a part of the prescribed part; and

(b) in respect of any part of the period commencing on the day on which the prescribed part was first used by any person for any purpose after completion of the relevant construction and ending immediately before the time of destruction:

(i) a deduction has not been allowed and is not allowable under section 124ZH to any person in respect of that amount of qualifying expenditure; or

(ii) a deduction that has been allowed or is allowable under section 124ZH to any person in respect of that amount of qualifying expenditure has been reduced, or is liable to be reduced, by virtue of the application of subsection (1) of this section,

the relevant deduction shall be reduced by such amount as the Commissioner considers fair and reasonable.