INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART XII - DROUGHT INVESTMENT ALLOWANCE  

Division 5 - Special provisions about primary producers  

Subdivision A - Partnerships  

SECTION 656   AMOUNT ASSESSABLE WHERE DISPOSAL OF PARTNER INTEREST  

656(1)   When section applies.  

This section applies if a deduction under Division 2 in respect of an item of drought mitigation property was taken into account in working out the net income, or partnership loss, of a partnership for a year of income.

656(2)   Disposal of partner interest within 12 months.  

If a partner disposes of the whole or part of the partner's interest in the partnership, or in the item, less than 12 months after the item is first used, or installed ready for use, by the partnership, the amount worked out under subsection (4) is included in the partner's assessable income of the year of income.

656(3)   Disposal of partner interest after 12 months.  

If:

(a) the disposal took place 12 months or more after the first use or installation; and

(b) when the partnership acquired or constructed the item, the partner intended to dispose of the interest after the partnership became entitled to the deduction;

the amount worked out under subsection (4) is included in the partner's assessable income of the year of income.

656(4)   Amount assessable.  

Subject to subsection (5), the amount included in the assessable income is:

(a) if the partners have agreed that a proportion of the expenditure comprising the deduction was to be borne by the partner - that proportion of the deduction; or

(b) in any other case - a proportion of the deduction equal to the partner's partnership interest (see section 677 ) for the year of income.

656(5)   Commissioner may determine that amount not wholly assessable.  

If the Commissioner determines that the whole or part of the amount should not be included in the assessable income, the whole or the part is not so included.