Taxation Laws Amendment Act (No. 2) 1993 (18 of 1993)

PART 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 7   Amendments relating to foreign investment

Subdivision L   Recalculation of notional deduction for certain prescribed classes of property

49   Notional deductions-amortisation of expenditure in acquiring property

Section 570 of the Principal Act is amended:

(a) by omitting from subsection (1) "If" and substituting "Subject to subsection (1A), if";

(b) by inserting after subsection (1) the following subsection:

"(1A) If:

(a) the accounts of the FIF in respect of one or more accounting periods include an amount in respect of the amortisation of the expenditure incurred in the acquisition of a class of property prescribed for the purposes of subparagraph (1) (a) (iii); and

(b) the regulations prescribing the class also prescribe a percentage as the annual amortisation percentage in relation to the class, or a category of property included in the class;

then subsection (1) must be applied, in relation to each notional accounting period that is appropriate, as if the accounts had amortised the expenditure in relation to the class or the category on the basis of the prescribed annual amortisation percentage.".