INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 1 - General  

SECTION 23H   EXEMPTION OF CERTAIN FILM INCOME  

23H(1)   [Exempt income]  

Where the amount of the net assessable income of a taxpayer in relation to a film in relation to a year of income is equal to or less than the amount of the unrecouped capital expenditure of the taxpayer in relation to the film as at the end of the year of income, so much of the amount that, but for this section, would be included in the assessable income of the taxpayer of the year of income in relation to the film by virtue of subsection 26AG(2) as is equal to the amount of that net assessable income is exempt from tax.

23H(2)   [Exempt income - unrecouped capital expenditure]  

Where the amount of the net assessable income of a taxpayer in relation to a film in relation to a year of income exceeds the amount of the unrecouped capital expenditure of the taxpayer in relation to the film as at the end of the year of income, so much of the amount that, but for this section, would be included in the assessable income of the taxpayer of the year of income in relation to the film by virtue of subsection 26AG(2) as is equal to the amount of that unrecouped capital expenditure is exempt from tax.

23H(3)   [Net assessable income]  

For the purposes of this section, the net assessable income of a taxpayer in relation to a film in relation to a year of income is the amount, or the sum of the amounts, that, but for this section, would be included in the assessable income of the taxpayer of the year of income in relation to the film under subsection 26AG(2) reduced by any deductions allowable to the taxpayer in respect of the year of income that are deductions to which section 124ZAO applies in relation to the taxpayer in relation to the film in relation to the year of income.

23H(4)   [Unrecouped capital expenditure]  

For the purposes of this section, the unrecouped capital expenditure of a taxpayer in relation to a film as at the end of a year of income is:

(a) in a case where the sum of:

(i) 50% of so much (if any) of the deductible moneys as are deductible 150% moneys;

(ii) 33% of so much (if any) of the deductible moneys as are deductible 133% moneys; and

(iii) 20% of so much (if any) of the deductible moneys as are deductible 120% moneys,

exceeds the previously recouped amount - the amount of the excess; or

(b) in any other case - a nil amount.

23H(4A)   [Definitions]  

For the purposes of the application of subsection (4) in ascertaining the amount of the unrecouped capital expenditure of a taxpayer in relation to a film as at the end of a year of income (in this subsection referred to as the ``relevant year of income'' ):

"deductible moneys"
means capital moneys expended by the taxpayer, in the relevant year of income or a preceding year of income, in producing, or by way of contribution to the cost of producing, the film, being moneys in respect of which a deduction has been allowed or is allowable, or deductions have been allowed or are allowable, to the taxpayer under former section 124ZAF or under section 124ZAFA ;

"deductible 120% moneys"
means deductible moneys in respect of which the deduction allowed or allowable under former section 124ZAF or under section 124ZAFA is an amount equal to 120% of the deductible moneys;

"deductible 133% moneys"
means deductible moneys in respect of which the deduction allowed or allowable under former section 124ZAF or under section 124ZAFA is an amount equal to 133% of the deductible moneys;

"deductible 150% moneys"
means deductible moneys in respect of which the deduction allowed or allowable under former section 124ZAF or under section 124ZAFA is an amount equal to 150% of the deductible moneys;

"previously recouped amount"
means the amount, or the sum of the amounts, to which section 26AG applies in relation to the taxpayer in relation to the film in relation to any year of income preceding the relevant year of income, to the extent to which that amount or those amounts are exempt from tax by virtue of this section.

23H(5)   [Where deduction allowed for capital expenditure]  

For the purposes of subsections (4) and (4A), where:

(a) a deduction has been allowed or is allowable, or deductions have been allowed or are allowable, to a taxpayer under former section 124ZAF or under section 124ZAFA in a year of income in respect of capital moneys expended by the taxpayer in producing, or by way of contribution to the cost of producing, a film; and

(b) section 26AG first applied to an amount in relation to the taxpayer in relation to the film in relation to a year of income (in this subsection referred to as the ``preceding year of income'' ) preceding the year of income referred to in paragraph (a);

the capital moneys referred to in paragraph (a) shall be taken to be capital moneys expended by the taxpayer, in the preceding year of income, in respect of which a deduction has been allowed or deductions have been allowable to the taxpayer under former section 124ZAF or section 124ZAFA of the same amount, or the same respective amounts, as the deduction or deductions referred to in paragraph (a).

23H(6)   [Revenue expenses]  

For the purposes of this Act, any expenditure (not being expenditure in respect of which a deduction is allowable under section 124ZAFA ) that would, but for this section, be taken to have been incurred by a taxpayer in gaining or producing assessable income shall, notwithstanding this section, be taken to have been incurred by the taxpayer in gaining or producing assessable income.

23H(7)   [Expenditure of capital moneys]  

In this section, a reference to the expenditure of capital moneys is a reference to the expenditure of moneys that is expenditure of a capital nature.