Income Tax Assessment Act 1936
View history note
Hide history noteFormer Div 10BA repealed by No 164 of 2007, s 3 and Sch 10 item 41, effective 1 July 2010.
Former Div 10BA inserted by No 111 of 1981.
Former Subdiv B repealed by No 164 of 2007, s 3 and Sch 10 item 41, effective 1 July 2010.
(Repealed by No 164 of 2007)
Former s 124ZAFA repealed by No 164 of 2007, s 3 and Sch 10 item 41, effective 1 July 2010. S 124ZAFA formerly read:
an amount equal to: of the amount of the moneys expended shall be allowed as a deduction in the assessment of the taxpayer in respect of income of the year of income in which the moneys were expended by the taxpayer. S 124ZAFA(1) amended by No 57 of 1990, No 153 of 1988, No 168 of 1985 and No 14 of 1984. S 124ZAFA(1A) inserted by
No 164 of 2007
, s 3 and Sch 10 item 6, effective 25 September 2007. Former s 124ZAFA(1A) omitted by No 153 of 1988, amended by No 168 of 1985 and inserted by No 14 of 1984. Former s 124ZAFA(1AA) inserted by No 168 of 1985. Former s 124ZAFA(1B) amended by No 168 of 1985 and inserted by No 14 of 1984. the deduction shall, for the purposes of this Act, be deemed not to have been, or not to be, allowable, as the case may be. subsection (2) shall, notwithstanding subsection (3), apply in relation to the deduction.
production contract
underwriting contract
S 124ZAFA(5) inserted by No 14 of 1984.
SECTION 124ZAFA DEDUCTIONS FOR CAPITAL EXPENDITURE UNDER POST 12 JANUARY 1983 CONTRACTS
124ZAFA(1)
Subject to this Subdivision, where:
(a)
a taxpayer has, under a contract entered into on or after 13 January 1983, expended capital moneys in producing, or by way of contribution to the cost of producing, a film;
(b)
at the time when the moneys were expended:
(i)
the taxpayer was a resident; and
(ii)
a provisional certificate or a final certificate was in force in relation to the film;
(c)
the Commissioner is satisfied that, at the time when the moneys were expended:
(i)
the taxpayer expected to become the first owner, or one of the first owners, of the copyright in the film when that copyright came into existence; and
(ii)
the taxpayer intended to use that copyright, or the taxpayer's interest in that copyright, as the case may be, for the purpose of producing assessable income from the exhibition of the film to the public in cinemas or by way of television broadcasting or from granting rights to exhibit the film to the public in cinemas or by way of television broadcasting; and
(d)
in a case where the moneys were expended by the taxpayer by way of contribution to the cost of producing the film:
(iii)
there is in force a declaration lodged in respect of the film in accordance with subsection
124ZADA(1)
by a person who has been notified by the Commissioner under subsection
124ZADA(2)
that the person is considered by the Commissioner to be an appropriate person to lodge the declaration in respect of the film; and
(iv)
before the end of the financial year in which capital moneys were first expended (whether by the taxpayer or by another person) in producing, or by way of contribution to the cost of producing, the film:
(A)
a production contract was entered into (whether or not by the taxpayer) under which an amount of capital moneys specified in the production contract as the estimated cost of producing the film was to be expended in producing, or by way of contribution to the cost of producing, the film; or
(B)
a production contract, and an underwriting contract or underwriting contracts, were entered into (whether or not by the taxpayer) under which an amount of capital moneys specified in the production contract as the estimated cost of producing the film was to be expended in producing, or by way of contribution to the cost of producing, the film;
(e)
where:
(i)
the moneys were expended under a contract entered into on or before 23 August 1983; and
(ii)
the moneys were expended by the taxpayer by way of contribution to the cost of producing the film; and
(iii)
the moneys were contributed before 1 July 1983; and
150%; or
(iv)
the moneys were:
(A)
expended before 1 July 1983 in producing the film; or
(B)
on or before 1 July 1983, paid into a film account opened in relation to the film;
(f)
where:
(i)
the moneys were expended under a contract entered into on or before 23 August 1983; and
(ii)
the moneys were expended by the taxpayer by way of contribution to the cost of producing the film; and
(iii)
the moneys were contributed after 30 June 1983; and
150%; or
(iv)
the moneys were, upon contribution, deposited in a film account opened in relation to the film;
(g)
where:
(i)
the moneys were expended under a contract entered into on or before 23 August 1983; and
150%; or
(ii)
the moneys were expended by the taxpayer in producing the film;
(h)
where:
(i)
the moneys were expended under a contract entered into after 23 August 1983 and on or before 19 September 1985; and
(ii)
the moneys were expended by the taxpayer by way of contribution to the cost of producing the film; and
133%; or
(iii)
the moneys were, upon contribution, deposited in a film account opened in relation to the film;
(j)
where:
(i)
the moneys were expended under a contract entered into after 23 August 1983 and on or before 19 September 1985; and
133%; or
(ii)
the moneys were expended by the taxpayer in producing the film;
(k)
where:
(i)
the moneys were expended under a contract entered into after 19 September 1985 and before 25 May 1988; and
(ii)
the moneys were expended by the taxpayer by way of contribution to the cost of producing the film; and
120%; or
(iii)
the moneys were, upon contribution, deposited in a film account opened in relation to the film;
(m)
where:
(i)
the moneys were expended under a contract entered into after 19 September 1985 and before 25 May 1988; and
120%; or
(ii)
the moneys were expended by the taxpayer in producing the film;
(n)
where the moneys were expended under a contract entered into on or after 25 May 1988
-
100%;
124ZAFA(1A)
A deduction under subsection (1) is not allowable in relation to the 2009-10 year of income or a later year of income.
124ZAFA(1AA)
(Omitted by No 153 of 1988)
124ZAFA(1B)
(Omitted by No 153 of 1988)
124ZAFA(2)
Subject to subsection (3), where a deduction has been allowed, or would, but for this subsection, be allowable, from the assessable income of a taxpayer of a year of income under subsection (1) in relation to capital moneys expended by the taxpayer in producing, or by way of contribution to the cost of producing, a film and the following conditions are not satisfied:
(a)
before the expiration of the relevant 24 month period:
(i)
the taxpayer has used the copyright in the film or the taxpayer's interest in the copyright, as the case may be, for the purpose of producing assessable income from the exhibition of the film to the public in cinemas or by way of television broadcasting or from granting rights to exhibit the film to the public in cinemas or by way of television broadcasting; or
(ii)
the taxpayer has derived assessable income under an agreement entered into before the copyright in the film came into existence under which the taxpayer agreed, upon the copyright coming into existence, to grant rights to another person to exhibit the film to the public in cinemas or by way of television broadcasting; and
(b)
the taxpayer has, by reason of the moneys being expended, become the first owner, or one of the first owners, of the copyright in the film before the expiration of the relevant 24 month period;
124ZAFA(3)
Subsection (2) does not apply in relation to a deduction that has been allowed, or is allowable, from the assessable income of a taxpayer of a year of income in relation to capital moneys expended by the taxpayer in producing, or by way of contribution to the cost of producing, a film where:
(a)
the taxpayer dies before the expiration of the relevant 24 month period; and
(b)
the Commissioner is satisfied that subsection (2) would not have applied in relation to the deduction if the taxpayer had not died.
124ZAFA(4)
Where:
(a)
by reason that the Commissioner is satisfied in accordance with paragraph (3)(b) that subsection (2) would not have applied in relation to a deduction if a taxpayer had not died, subsection (2) would not, but for this subsection, apply in relation to the deduction; and
(b)
the Commissioner later becomes satisfied that subsection (2) would have applied in relation to the deduction if the taxpayer had not died;
124ZAFA(5)
In this section:
, in relation to a film, means a contract under which a person has, or persons have, agreed to expend capital moneys in producing, or by way of contribution to the cost of producing, the film, but does not include an underwriting contract.
, in relation to a film, means a contract:
(a)
under which a person has, or persons have, conditionally agreed to expend capital moneys by way of contribution to the cost of producing the film; and
(b)
under which no person has agreed to expend capital moneys by way of contribution to the cost of producing the film otherwise than conditionally.
124ZAFA(6)
For the purposes of this section, a person shall be taken to have conditionally agreed under a contract to expend capital moneys by way of contribution to the cost of producing a film if, under the contract, the person has agreed to expend capital moneys by way of contribution to the cost of producing the film only in the event that the aggregate of the capital moneys expended, or agreed to be expended, in producing, or by way of contribution to the cost of producing, the film is less than an amount specified in, or ascertained in accordance with, the contract.
S 124ZAFA(6) inserted by No 14 of 1984.
Former s 124ZAFA inserted by No 14 of 1983.
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