INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART XII - DROUGHT INVESTMENT ALLOWANCE  

Division 3 - Leasing company deduction  

Subdivision C - Transfer of entitlement to deduction  

SECTION 647   LEASING COMPANY MAY TRANSFER ENTITLEMENT TO LESSEE  

647(1)   [Application]  

If, before the 8th day after the end of the month in which the agreement for the lease concerned is entered into, the taxpayer gives the lessee a declaration in accordance with subsection (2) transferring the entitlement to some or all of the deduction, the entitlement is transferred.

Note:

Despite being transferred, the entitlement may be reduced under section 648 or lost under section 649 .

647(2)   The declaration.  

The declaration must:

(a) be in writing, signed by the public officer of the taxpayer, and state that the taxpayer transfers to the lessee the entitlement to the deduction or to a specified amount of the deduction; and

(b) be accompanied by a statement, also signed by the public officer of the taxpayer, setting out the following:

(i) a description of the item of drought mitigation property;

(ii) the date on which the item was acquired by the taxpayer or the construction of the item began;

(iii) the amount of expenditure incurred by the taxpayer for the acquisition or construction of the item;

(iv) the date on which the taxpayer entered into the lease;

(v) the name and address of the lessee;

(vi) the term of the lease.

647(3)   Section applies after section 639 but before section 640 and disentitling provisions.  

In working out the amount of the deduction for the purposes of this section, section 639 is to be taken into account, but the following provisions are to be disregarded:

(a) section 26-55 (which reduces the deduction) of the Income Tax Assessment Act 1997 ;

(b) Subdivision B (which takes away the deduction) of this Division;

(c) sections 663 to 666 (which take away the deduction) of this Act.

The provisions in paragraphs (a) to (c) will then apply only to the taxpayer's deduction as reduced by any amount transferred under this section.