INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision B - Development allowance  

SECTION 82AD   LESSOR MAY TRANSFER BENEFIT OF DEDUCTION TO LESSEES  

82AD(1)   [Deduction passed on to lessee]  

Where a leasing company that would, but for this section, be entitled to a deduction under this Subdivision from the assessable income of the company of a year of income (in this subsection referred to as the relevant deduction ) in respect of property leased to another person (in this subsection referred to as the lessee ) has, before the prescribed date, lodged with the lessee:

(a) a declaration in writing, signed by the public officer of the company, stating that the company transfers to the lessee the benefit of the whole, or of a specified fraction, of the relevant deduction, or the benefit of so much of the relevant deduction as does not exceed an amount specified in the declaration; and

(b) a statement, signed by the public officer of the company, containing the following particulars:

(i) a description of the property;

(ii) the date on which the property was acquired or the construction of the property was commenced;

(iii) the amount of expenditure incurred by the company in respect of the acquisition or construction of the property;

(iv) the date on which the company entered into the relevant lease agreement;

(v) the name and address of the lessee; and

(vi) the period for which the lessee agreed to take the property on lease;

there shall be allowed as a deduction from the assessable income of the lessee of the year of income during which the property was either first used, or installed ready for use, by the lessee:

(c) if the declaration by the company stated that the company transferred to the lessee the benefit of the whole of the relevant deduction - an amount equal to the relevant deduction;

(d) if the declaration by the company stated that the company transferred to the lessee a specified fraction of the relevant deduction - an amount equal to that fraction of the relevant deduction; or

(e) if the declaration by the company stated that the company transferred to the lessee the benefit of so much of the relevant deduction as does not exceed an amount specified in the declaration - an amount equal to so much of the relevant deduction as does not exceed the amount so specified.

82AD(1A)    

82AD(2)   [Prescribed lodgment date]  

For the purposes of subsection (1), the prescribed date, in relation to property leased by a leasing company to another person, is -

(a) if the agreement for the lease was entered into before 1 January 1993 - 8 January 1993; or

(b) in any other case - the 8th day after the end of the month in which the agreement for the lease is entered into;

or, if the Commissioner has agreed to an extension of the period for lodgment of a declaration by the leasing company in relation to that property, the last day of the extended period.

82AD(3)   [Lessor's deduction reduced]  

Where -

(a) a deduction would, but for this section, be allowable to a leasing company under this Subdivision from its assessable income of a year of income in respect of property leased to another person (in this subsection referred to as the lessee ); and

(b) by virtue of subsection (1), a deduction has been allowed or is allowable in respect of the property from the assessable income of the lessee,

the amount of the deduction that would, but for this section, be allowable to the leasing company under this Subdivision in respect of that property shall be reduced by the amount of the deduction so allowed or allowable to the lessee.

82AD(4)   [Section 26-55 of 1997 Act disregarded]  

In determining for the purposes of this section whether a deduction would, but for this section, be allowable to a leasing company under this Subdivision from its assessable income of a year of income in respect of a unit of property and the amount of any such deduction, section 26-55 of the Income Tax Assessment Act 1997 shall be disregarded.