Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 394 - Forestry managed investment schemes  

SECTION 394-10   Deduction for amounts paid under forestry managed investment schemes  

394-10(1)    
You can deduct an amount if:

(a) you hold a *forestry interest in a *forestry managed investment scheme; and

(b) you pay the amount under the scheme; and

(c) the scheme satisfies the *70% DFE rule (see section 394-35 ) on 30 June in the income year in which a *participant in the scheme first pays an amount under the scheme; and

(d) you do not have day to day control over the operation of the scheme (whether or not you have the right to be consulted or give directions); and

(e) at least one of these conditions is satisfied:

(i) there is more than one participant in the scheme;

(ii) the *forestry manager of the scheme, or an *associate of the forestry manager, manages, arranges or promotes similar schemes; and

(f) the condition in subsection (4) is satisfied.

394-10(2)    
You deduct the amount for the income year in which you pay it.

394-10(3)    
For the purposes of this Division, do not treat an amount as being paid under a *forestry managed investment scheme if:

(a) you pay the amount in connection with a *CGT event in relation to a *forestry interest in the scheme; and

(b) as a result of the CGT event:

(i) another *participant in the scheme no longer holds the forestry interest; and

(ii) you start to hold the forestry interest.

394-10(4)    
For the purposes of paragraph (1)(f), the condition in this subsection is satisfied unless:

(a) 18 months have elapsed since the end of the income year in which an amount is first paid under the *forestry managed investment scheme by a *participant in the scheme; and

(b) the trees intended to be established in accordance with the scheme have not all been established before the end of those 18 months.

394-10(5)    
You cannot deduct an amount under subsection (1) if:

(a) you hold the *forestry interest mentioned in paragraph (1)(a) as an *initial participant; and

(b) a *CGT event happens in relation to the forestry interest within 4 years after the end of the income year in which you first pay an amount under the scheme.

If you have already deducted it, your assessment may be amended to disallow the deduction.

394-10(5A)    

Paragraph (5)(b) does not apply to a ^* CGT event if:

(a) the CGT event happens because of circumstances outside your control; and

Example:

The forestry interest is compulsorily acquired.

(b) when you acquired the ^* foresty interest, you could not reasonably have foreseen the CGT event happening.

394-10(6)    
Despite section 170 of the Income Tax Assessment Act 1936 , the Commissioner may amend your assessment at any time within 2 years after the *CGT event, for the purpose of giving effect to subsection (5).

394-10(7)    
Sections 82KZMD and 82KZMF of the Income Tax Assessment Act 1936 do not affect the timing of a deduction under this section.