INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART XII - DROUGHT INVESTMENT ALLOWANCE  

Division 5 - Special provisions about primary producers  

Subdivision B - Group companies  

SECTION 659   DEDUCTION NOT LOST TO PRIMARY PRODUCER DESPITE LEASING ETC. ITEM AFTER 12 MONTH PERIOD  

659(1)   When section applies.  

This section applies if the taxpayer is a company that would lose the entitlement to the deduction to which Division 2 applies under paragraph 634(1)(b) because the taxpayer:

(a) leased the item of drought mitigation property to another person; or

(b) granted rights to another person to use the item;

and the other person is a group company (see section 682 ) of the taxpayer.

659(2)   Conditions for not losing the deduction.  

The taxpayer does not lose the entitlement to the deduction if the use of the item under the contract or arrangement was:

(a) to take place while the group company remains a group company of the taxpayer; and

(b) to be wholly and exclusively both in Australia and for the purpose of producing assessable primary production income other than by leasing the item or granting a right to another person to use it.