INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART XII - DROUGHT INVESTMENT ALLOWANCE  

Division 6 - Special provisions about leasing companies  

Subdivision B - Group companies  

SECTION 669   DEDUCTION NOT LOST TO LEASING COMPANY DESPITE LESSEE CONTRACT ETC. FOR USE OF PROPERTY AFTER 12 MONTH PERIOD  

669(1)   When section applies.  

This section applies if the taxpayer would lose the entitlement to the deduction to which this Division applies:

(a) under paragraph 645(1)(d) or subsection 666(1) because the lessee entered into a contract or arrangement with another person for the use of the item of drought mitigation property by the other person; or

(b) under paragraph 645(1)(f) or subsection 666(1) because the lessee acquired the item of drought mitigation property and entered into a contract or arrangement with another person for its use by the other person;

and the other person is a group company (see section 682 ) of the lessee.

669(2)   Conditions for not losing the deduction.  

The taxpayer does not lose the entitlement to the deduction if the use of the item under the contract or arrangement was:

(a) to take place while the other person remains a group company of the lessee; and

(b) to be wholly and exclusively both in Australia and for the purpose of producing assessable primary production income other than by leasing the item or granting a right to another person to use the item.