INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision A - General  

SECTION 70   COST OF EXTENDING TELEPHONE LINES  

70(1AA)   [No deduction 1997/98 year onwards]  

A deduction is not allowable under this section for the 1997-98 year of income or a later year of income.

Note:

Subdivision 387-F of the Income Tax Assessment Act 1997 provides for deductions for the cost of a telephone line for the 1997-98 year of income and later years of income (even if the cost was incurred before the 1997-98 year of income - see SubDivision 387-F of the Income Tax (Transitional Provisions) Act 1997 ).

70(1)   [Definitions]  

In this section:

"telephone line"
does not include any part of a telephone line the cost of which part has been allowed or is allowable as a deduction, or has been or is to be taken into account in ascertaining the amount of an allowable deduction, under a provision of this Act other than this section, in any assessment in respect of any taxpayer or in calculating in accordance with section 90 the net income of any partnership or any partnership loss in respect of any year of income; and

"the cost of a telephone line"
means capital expenditure incurred after the year of income that ended on 30 June 1963 on a telephone line extending to or situated on land on which a person was, at the time when the expenditure was incurred, carrying on a business of primary production, being expenditure incurred by:

(a) the owner of the land;

(b) a lessee, tenant or other person having an interest in the land; or

(c) a share-farmer carrying on a business of primary production on the land.

70(1A)   [Commercial debt forgiveness]  

This section has effect subject to Division 245 of Schedule 2C .

70(2)   [Allowable deductions]  

An amount equal to one-tenth of the cost of a telephone line shall be an allowable deduction from the assessable income of the taxpayer of the year of income in which the relevant expenditure was incurred and of each of the succeeding 9 years of income.

70(3)   [Partnership]  

This section does not apply in relation to the calculation of the net income of a partnership, or a partnership loss, in accordance with section 90 , but where a partnership has incurred the cost of a telephone line, then, for the purposes of the application of subsection (2) in respect of a partner in the partnership, the cost of the telephone line shall be taken to be:

(a) so much of the amount that would be the cost of the telephone line in relation to the partnership if the partnership were a taxpayer as the partners have agreed is to be borne by that partner; or

(b) if the partners have not agreed as to the part of that amount that is to be borne by that partner - so much of that amount as bears to that amount the same proportion as the individual interest of the partner in the net income of the partnership of the year of income in which the relevant expenditure was incurred bears to that net income or, as the case requires, as the individual interest of the partner in the partnership loss for that year of income bears to that partnership loss.

70(4)   [No double deduction]  

Where any part of the cost of a telephone line has been allowed or is allowable as a deduction under this section in an assessment of a taxpayer of any year of income, no amount shall, in respect of that telephone line, be an allowable deduction, or be taken into account in ascertaining the amount of an allowable deduction, under a provision of this Act other than this section in any assessment of any taxpayer or in calculating in accordance with section 90 the net income of any partnership or any partnership loss in respect of any year of income.