INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART XII - DROUGHT INVESTMENT ALLOWANCE  

Division 3 - Leasing company deduction  

Subdivision A - Entitlement to deduction  

SECTION 641  

641   PROPORTIONATE ALLOCATION OF LIMITS  
If:

(a) because of section 639 of this Act or section 26-55 of the Income Tax Assessment Act 1997 , only a proportion (the eligible proportion ) of a deduction or of the total deductions for expenditure of the taxpayer on one or more items of drought mitigation property is allowable; and

(b) it is necessary for the purpose of any other provision (e.g. section 646 or 647 ) to know:

(i) how much of the deduction for a particular item was allowable; or

(ii) which expenditure on a particular item was taken into account in working out the deduction allowable for that item;

then:

(c) only the eligible proportion of the deduction for the particular item is taken to have been allowable; and

(d) only the eligible proportion of each dollar of the expenditure on the particular item was taken into account in working out the deduction.

Note:

For an example of the operation of this provision, see subsection 631(3) .