DEVELOPMENT ALLOWANCE AUTHORITY ACT 1980 (ARCHIVE)

CHAPTER 2 - DEVELOPMENT ALLOWANCE  

PART 6 - TRANSFER OF BENEFITS OF REGISTRATION OR CERTIFICATE  

Division 1 - Takeovers not involving re-constituted joint ventures or re-constituted partnerships  

SECTION 53 (ARCHIVE)  

53   CRITERIA FOR GRANTING APPLICATION  
The DAA must not grant the application unless the DAA is satisfied that:

(a) the transferor has ceased, or genuinely proposes to cease, to carry out the project; and

(b) the transferee has taken over, or genuinely proposes to take over, the completion of the project (with or without modification); and

(c) in the case of plant expenditure which the transferee claims to have incurred in carrying out the completion of the project (with or without modification) - the plant expenditure has been incurred by the transferee in carrying out the project; and

(d) in the case of plant expenditure which the transferee claims to propose to incur in carrying out completion of the project (with or without modification) - the proposal is genuine; and

(e) the transferee has taken over, or is proposing to take over, the completion of the project (with or without modification) for genuine commercial reasons; and

(f) if the completion of the project has been, or is to be, taken over by the transferee with modifications:

(i) in any case - the modified project does not amount to a substantially different project from the transferor's original project; and

(ii) if the transferor's original project was part of a joint venture project - the modified project is not part of a joint venture project that is substantially different from the original joint venture project; and

(iia) if the transferor's original project was part of a joint venture project scheme - the modified project is not part of a joint venture project scheme that is substantially different from the original joint venture project scheme; and

(iii) if the transferor's original project was part of a company group project scheme - the modified project is not part of a company group project scheme that is substantially different from the original company group project scheme; and

(iv) if the transferor's original project was part of an individual project scheme - the modified project is not part of an individual project scheme that is substantially different from the original individual project scheme; and

(g) having regard to:

(i) the financial capacity of the transferee; and

(ii) such other matters as the DAA considers relevant;

it is reasonably likely that the transferee will complete the carrying out of the project (with or without modification); and

(h) the expenditure incurred, or proposed to be incurred, by the transferee in carrying out the completion of the project (with or without modification) has passed the prospective deduction test.