INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART XII - DROUGHT INVESTMENT ALLOWANCE  

Division 6 - Special provisions about leasing companies  

Subdivision C - Lease-back of used property  

SECTION 670   DEDUCTION FOR PROPERTY USED BY LESSEE  

670(1)   When section applies.  

This section applies if:

(a) a leasing company acquires an item of drought mitigation property from another person (the lessee ) who had used it, or held it for use, for not more than 6 months; and

(b) the leasing company then leases the item to the lessee.

670(2)   Deduction still allowable.  

If:

(a) the only reason for the leasing company not being entitled to a deduction under Division 3 for the item is the use or holding for use by the lessee; and

(b) under a contract or arrangement entered into by the lessee at arm's length after 23 March 1995, all of the following happened:

(i) the lessee acquired or constructed the item;

(ii) the leasing company acquired the item from the lessee;

(iii) the leasing company leased the property to the lessee;

then the leasing company is entitled to the deduction under Division 3 .