INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 (ARCHIVE)

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 387 - Capital allowances for primary producers and some land-holders  

Subdivision 387-G - Forestry roads and timber mill buildings  

SECTION 387-485 (ARCHIVE)   How the balancing adjustment is affected if there has only been old roll-over relief  

387-485(1)    
If:

(a) before the 1997-98 income year, roll-over relief was available under section 124GA or section 124JD of the Income Tax Assessment Act 1936 in relation to the disposal of an access road or a timber mill building by a taxpayer (the transferor ) to another taxpayer (the transferee ); and

(b) in the 1997-98 income year or a later income year:

(i) the road or building is destroyed; or

(ii) the transferee disposes of it in circumstances where Subdivision 41-A of the Income Tax Assessment Act 1997 (which sets out Common rule 1 dealing with roll-over relief for related entities) does not apply to the disposal; or

(iii) for some other reason, the transferee stops using it for the purpose for which it was primarily and principally constructed or acquired; and

(c) there has been no earlier disposal of the road or building where roll-over relief was available under Common rule 1;

the balancing adjustment is affected in 2 ways.

387-485(2)    
First:

(a) the total amounts deductible by the transferor under section 124F or 124JA of the Income Tax Assessment Act 1936 in relation to the road or building; or

(b) if there have been 2 or more prior applications of section 124GA or 124JA of that Act in relation to the road or building - the total amounts deductible by the prior transferors under section 124F or 124JA of that Act in relation to the road or building;

are taken to have been deductible by the transferee under Subdivision 387-G of the Income Tax Assessment Act 1997 in relation to the road or building.

387-485(3)    
Second:

(a) the transferor's total capital expenditure (of a kind that qualified for a deduction under section 124F or 124JA of the Income Tax Assessment Act 1936 ) relating to the road or building; or

(b) if there have been 2 or more prior applications of section 124GA or 124JD of that Act - the prior transferors' total capital expenditure (of a kind that qualified for a deduction under section 124F or 124JA of that Act) relating to the road or building;

is taken to have been the transferee's total capital expenditure (of a kind that qualified for a deduction under Subdivision 387-G of the Income Tax Assessment Act 1997 ) relating to the road or building.