INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART XII - DROUGHT INVESTMENT ALLOWANCE  

Division 6 - Special provisions about leasing companies  

Subdivision A - Partnerships  

SECTION 665   LOSS OF PARTNER DEDUCTION WHERE DISPOSAL BY PARTNER AFTER 12 MONTHS  

665(1)   [Application]  

Subject to subsection (2), if:

(a) as a result of section 661 , a partner is entitled to a deduction; and

(b) 12 months or more after the item of drought mitigation property is first used, or installed ready for use, by the lessee and before the end of the term of the lease, the partner disposes of the whole or a part of the partner's interest in the partnership, or in the item, to a person other than the lessee; and

(c) when the lessee took the property on lease, the partner intended to dispose of the interest;

the partner is not entitled to the deduction.

665(2)   Commissioner may determine that entitlement not wholly lost.  

If the Commissioner determines that the partner should not lose the entitlement to the whole or part of the deduction, subsection (1) does not apply to the whole or the part.