INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10 - Mining and quarrying  

Subdivision C - General provisions  

SECTION 122N   DEDUCTIONS NOT ALLOWABLE UNDER OTHER PROVISIONS  

122N(1)   [Deductions allowable]  

Where the whole or a part of expenditure of a capital nature incurred by a taxpayer has been allowed or is or may become allowable as a deduction under this Division, or under provisions of a previous law of the Commonwealth relating to the taxation of income derived from mining operations, that expenditure shall not be an allowable deduction, and shall not be taken into account in ascertaining the amount of an allowable deduction, from the assessable income of the taxpayer of any year of income under any provision of this Act other than a provision of this Division.

122N(2)   [Depreciation]  

Subsection (1) does not prevent a deduction for depreciation being allowed to a taxpayer in respect of a unit of property the use of which for prescribed purposes or for the purposes referred to in section 122JF has been terminated, and where, by reason of the subsequent use of such a unit of property for a purpose other than a prescribed purpose or a purpose referred to in section 122JF , such a deduction becomes allowable, then, in the application of section 56 or 62 in relation to that deduction -

(a) the unit shall be deemed to have been acquired by the taxpayer at a cost equal to the amount that, in the opinion of the Commissioner, was the value of the unit at the date on which it commenced to be used for that purpose; and

(b) no part of the cost of the unit shall be taken to have been allowed or to be allowable under this Division as a deduction from the assessable income of the taxpayer of any year of income.

122N(2A)   [Prescribed purpose]  

A reference in subsection (2) to a prescribed purpose is a reference to a prescribed purpose within the meaning of Subdivision A.

122N(3)   [Amount deemed allowable deduction]  

For the purposes of subsection (1), an amount that would have been allowed or allowable as a deduction under this Division but for the operation of subsection 122D(3) , 122DB(3) , 122DD(3) , 122DF(3) , 122DG(6) , 122J(2) or (4B) , 122JE(5) or 122JF(2) , shall be deemed to have been allowed or to be allowable as such a deduction.