Income Tax Assessment Act 1936

Div 10B repealed by No 164 of 2007, s 3 and Sch 10 item 41, effective 1 July 2010.

Div 10B inserted by No 101 of 1956.

S 124R repealed by No 164 of 2007, s 3 and Sch 10 item 41, effective 1 July 2010. S 124R formerly read:

SECTION 124R COST OF A UNIT OF INDUSTRIAL PROPERTY  
124R(1)
For the purposes of this Division, the cost of a unit of industrial property to the owner of the unit shall, subject to subsection 124S(2) , be taken to be:

(a) in the case of an owner referred to in paragraph 124L(1)(a) :

(i) if subsection (2) of this section is applicable - the cost ascertained in accordance with that subsection; or

(ii) if subsection (2) of this section is not applicable - the expenditure referred to in paragraph 124L(1)(a) ;

(b) in the case of an owner referred to in paragraph 124L(1)(b) :

(i) if subsection (3) or (5) of this section is applicable - the cost ascertained in accordance with that subsection; or

(ii) if neither of those subsections is applicable - the expenditure referred to in paragraph 124L(1)(b) ;

(c) in the case of an owner referred to in paragraph 124L(1)(c) :

(i) if the owner acquired a unit of industrial property of another person in whole - the residual value of the unit in relation to the last preceding owner of the unit immediately before the time of the disposal of the unit; or

(ii) in any other case - such part of that residual value as the Commissioner determines; or

(d) in the case of an owner referred to in paragraph 124L(1)(d) :

(i) if the owner acquired a unit of industrial property of another person in whole - an amount ascertained by deducting from the residual value of the unit in relation to the last preceding owner of the unit immediately before the time of the transmission of the unit any deductions allowed or allowable under this Division in respect of the unit in an assessment in respect of income of that last preceding owner of the year of income during which the transmission took place; or

(ii) in any other case - such part of that amount as the Commissioner determines.

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History

S 124R(1) amended by No 108 of 1981.

124R(2)
Where, in the case of an owner referred to in paragraph 124L(1)(a) , the Commissioner is satisfied, having regard to any connection between the owner and any person who supplied goods to, or provided services for, the owner in relation to the unit of industrial property concerned or to any other relevant circumstances, that:

(a) the owner and that person were not dealing with each other at arm's length in relation to the supply of those goods or the provision of those services; and

(b) the expenditure of a capital nature incurred by the owner in relation to producing the work or other subject-matter in which the copyright subsists exceeds the expenditure of a capital nature that would have been incurred by the owner if the owner and that person had dealt with each other at arm's length,

the cost of the unit to the owner for the purposes of this Division shall be taken to be the amount of the expenditure of a capital nature that, in the opinion of the Commissioner, would have been incurred by the owner if the owner and that person had dealt with each other at arm's length.

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S 124R(2) amended by No 101 of 2006 , s 3 and Sch 2 item 316, by substituting " producing the work or other subject-matter in which the copyright subsists " for " devising the invention, producing the work or other subject-matter in which the copyright subsists or producing the design, as the case may be, " , effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .

S 124R(2) amended by No 108 of 1981.

124R(3)
Where, in the case of an owner referred to in paragraph 124L(1)(b) :

(a) the Commissioner is satisfied, having regard to any connection between the owner and the person from whom the unit of industrial property concerned was purchased or to any other relevant circumstances, that the owner and that person were not dealing with each other at arm's length in relation to the purchase; and

(b) the expenditure of a capital nature incurred by the owner on the purchase of the unit of industrial property:

(i) exceeds the amount that was the cost of the unit to the last preceding owner of the unit; or

(ii) does not exceed the amount that was the cost of the unit to the last preceding owner of the unit but exceeds the value of the unit at the time of the purchase,

the cost of the unit to the owner for the purposes of this Division shall be taken to be the cost of the unit to the last preceding owner of the unit or the value of the unit at the time of the purchase, whichever is the less.

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S 124R(3) amended by No 108 of 1981.

124R(4)
References in subsection (3) to the cost of a unit of industrial property to the last preceding owner of the unit or to the value of a unit of industrial property at the time of the purchase of the unit shall, if the purchase was a purchase of a part of a unit of industrial property of another person, be construed as references to such part of that cost or of that value, as the case may be, as the Commissioner determines.

124R(5)
Where, in the case of an owner referred to in paragraph 124L(1)(b) , the unit of industrial property was purchased by the owner of the unit with other property and no separate price was allocated to the unit, the amount of the expenditure of a capital nature incurred by the owner on the purchase of the unit for the purposes of this Division shall be taken to be so much of the purchase price of the unit and the other property as the Commissioner determines.

S 124R amended by No 108 of 1981 and substituted by No 172 of 1978.