INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
View history note
Hide history noteWhere a taxpayer has incurred or incurs capital expenditure referred to in subparagraph 123B(1)(a)(i) or (ii), the taxpayer may, subject to this section, elect that this section shall apply in respect of that expenditure.
An election under this section shall be made in writing signed by or on behalf of the taxpayer and shall be delivered to the Commissioner:
(a) where the election relates to expenditure that has been or is incurred before the end of the year of income of the taxpayer in which 17 September 1974 occurred - on or before the last day for the furnishing of the taxpayer's return of income of that year of income; or
(b) in any other case - on or before the last day for the furnishing of the taxpayer's return of income of the year of income in which the expenditure is incurred,
or within such further time as the Commissioner allows.
123BA(3) [Non-applicability of s 123B(1)(a)]Where an election is made under this section in relation to any expenditure:
(a) if any of that expenditure has been allowed or is allowable as a deduction or deductions from the assessable income of the taxpayer of a year or years of income preceding the year of income of the taxpayer in which 17 September 1974 occurred - paragraph 123B(1)(a) does not apply in relation to the remainder of that expenditure but the prescribed fraction of the remainder of that expenditure is an allowable deduction from the assessable income of the taxpayer of the year of income of the taxpayer in which 17 September 1974 occurred and from the assessable income of each of the prescribed number of years of income immediately succeeding that year of income; and
(b) in any other case - paragraph 123B(1)(a) does not apply in relation to that expenditure but paragraph 123B(1)(b) applies in relation to that expenditure.
For the purposes of paragraph (3)(a):
(a) the prescribed fraction is
|
1
A + 1 |
where A is the prescribed number; and
(b) the prescribed number is the number by which 19 exceeds the number of years of income before the year of income of the taxpayer in which 17 September 1974 occurred in each of which a deduction has been allowed or is allowable in respect of the expenditure concerned.
Subsection 123B(2) applies in relation to deductions under this section in like manner as it applies in relation to deductions under section 123B .
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
