Income Tax Assessment Act 1936

Former Div 10BA repealed by No 164 of 2007, s 3 and Sch 10 item 41, effective 1 July 2010.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Former Subdiv B repealed by No 164 of 2007, s 3 and Sch 10 item 41, effective 1 July 2010.

Former s 124ZAM repealed by No 164 of 2007, s 3 and Sch 10 item 41, effective 1 July 2010.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

SECTION 124ZAM NO DEDUCTION UNLESS EXPENDITURE AT RISK  
124ZAM(1)
Where:

(a) but for this section and sections 124ZAG , 124ZAJ , 124ZAK and 124ZAL , a taxpayer or a partnership would be taken, for the purposes of this Division, to have expended capital moneys in producing, or by way of contribution to the cost of producing, a film; and

(b) but for this section, a taxpayer (in this section referred to as the relevant taxpayer ), being the taxpayer referred to in paragraph (a) or a partner in the partnership, would be taken for the purposes of this Division to have expended the whole or a part of the capital moneys referred to in paragraph (a) (which whole or part is in this subsection referred to as the relevant amount ) in producing, or by way of contribution to the cost of producing, the film,

then, for the purposes of this Division, the amount of the capital moneys that, by virtue of the expenditure of the moneys referred to in paragraph (a), the relevant taxpayer is to be taken to have expended in producing, or by way of contribution to the cost of producing, the film is:

(c) if the Commissioner is satisfied that, at the time when the moneys referred to in paragraph (a) were expended, the relevant taxpayer was not at risk in respect of any amount by virtue of the expenditure of the moneys referred to in paragraph (a) - nil;

(d) if the Commissioner is satisfied that, at the time when the moneys referred to in paragraph (a) were expended, the relevant taxpayer was, by virtue of the expenditure of the moneys referred to in paragraph (a), at risk in respect of an amount less than the relevant amount - the amount in respect of which the taxpayer was at risk; or

(e) if the Commissioner is satisfied that, at the time when the moneys referred to in paragraph (a) were expended, the taxpayer was, by virtue of the expenditure of those moneys, at risk with respect to an amount equal to or greater than the relevant amount - the relevant amount.

124ZAM(2)
For the purposes of the application of subsection (1) in respect of the relevant taxpayer in relation to the moneys expended in relation to the film as mentioned in paragraph (1)(a), the taxpayer shall be taken to be at risk, by virtue of the expenditure of those moneys, in respect of an amount equal to the amount of the loss that, in the opinion of the Commissioner, would be suffered by the taxpayer by reason of the expenditure of the moneys referred to in paragraph (1)(a) if the relevant taxpayer were not to derive any income, other than excepted income, from the film or from the taxpayer's interest in the copyright of the film.

124ZAM(3)
For the purposes of subsection (2), income derived by the relevant taxpayer from the film is excepted income if:

(a) the income is derived under an agreement under which moneys were to be paid to the taxpayer or another person; and

(b) the Commissioner is satisfied that the agreement was entered into for the purpose, or for purposes that included the purpose, of enabling the moneys referred to in paragraph (1)(a) to be expended as mentioned in that paragraph.

124ZAM(4)
In forming an opinion for the purpose of subsection (2) as to the amount of a loss that would be suffered by the relevant taxpayer, by virtue of the expenditure of the moneys referred to in paragraph (1)(a), if the relevant taxpayer were not to derive any income, other than excepted income, from the film or from the taxpayer's interest in copyright in the film, the Commissioner may have regard to:

(a) any act that occurred, any transaction that was entered into or any circumstance that existed before, or at the time when, the moneys referred to in paragraph (1)(a) were expended; and

(b) any act that was likely to occur, any transaction that was likely to be entered into or any circumstance that was likely to exist after the time when the moneys referred to in paragraph (1)(a) were expended by reason of any act, transaction or circumstance mentioned in paragraph (a),

being an act, transaction or circumstance that had, or was likely to have, the effect of reducing or eliminating the loss that would be suffered by the relevant taxpayer, by virtue of the expenditure of the moneys referred to in paragraph (1)(a), if the relevant taxpayer were not to derive any income, other than excepted income, from the film or from the taxpayer's interest in copyright in the film.

124ZAM(5)
In this section:

(a) a reference to an agreement is a reference to any agreement, arrangement, understanding or scheme, whether formal or informal, whether express or implied, and whether or not enforceable or intended to be enforceable by legal proceedings; and

(b) a reference to income derived from a film is a reference to:

(i) any amount received or receivable as consideration for the use of, or the right to use, the film or any copyright or interest in copyright in the film;

(ii) any amount received or receivable as consideration for the granting of a licence in respect of future copyright in the film; and

(iii) any amount received or receivable as consideration in respect of the disposal of the whole or a part of any copyright or interest in copyright in the film or in respect of the assignment of any right to use the copyright or an interest in the copyright in the film or to derive income from the use of such a copyright or interest.

Archived:

S124ZAN repealed as inoperative by No 101 of 2006 , s 3 and Sch 1 item 122, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive .