INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
View history note
Hide history noteWhere the Commissioner is satisfied that:
(a) a contract or arrangement was entered into by a taxpayer before 27 February 1992 for the acquisition, or taking on lease, by the taxpayer of a unit of property (in this subsection referred to as the original unit );
(b) on or after that date:
(i) the taxpayer entered into a contract (whether with the same or another person) for the acquisition or taking on lease (whether with or without the acquisition or taking on lease of other property) of the original unit or of another unit of property (in this subsection referred to as the substituted unit ) identical with, or having a purpose similar to that of, the original unit and intended by the taxpayer to be in lieu of the original unit; or
(ii) the taxpayer commenced the construction of a unit of property (in this subsection also referred to as the substituted unit ) identical with, or having a purpose similar to that of, the original unit and intended by the taxpayer to be in lieu of the original unit; and
(c) the taxpayer entered into the contract for acquisition or taking on lease of the original unit or of the substituted unit, or commenced the construction of the substituted unit, for the purpose, or for purposes that included the purpose, of obtaining:
(i) a deduction under this Subdivision; or
(ii) a benefit related directly or indirectly to a deduction under this Subdivision;
the Commissioner may refuse to allow a deduction under this Subdivision:
(d) in a case to which subparagraph (b)(i) applies - in relation to the original unit or the substituted unit; or
(e) in a case to which subparagraph (b)(ii) applies - in relation to the substituted unit.
Where the Commissioner is satisfied that:
(a) a taxpayer commenced construction of a unit of property (in this subsection referred to as the original unit ) before 27 February 1992;
(b) on or after that date:
(i) the taxpayer commenced the construction of a unit of property (in this subsection referred to as the substituted unit ) identical with, or having a purpose similar to that of, the original unit and intended by the taxpayer to be in lieu of the original unit; or
(ii) the taxpayer entered into a contract for the acquisition or taking on lease (whether with or without the acquisition or taking on lease of other property) of the original unit or of another unit of property (in this subsection also referred to as the substituted unit ) identical with, or having a purpose similar to that of, the original unit and intended by the taxpayer to be in lieu of the original unit; and
(c) the taxpayer commenced the construction of the substituted unit, or entered into the contract for the acquisition or taking on lease of the original unit or of the substituted unit, for the purpose, or for purposes that included the purpose, of obtaining:
(i) a deduction under this Subdivision; or
(ii) a benefit related directly or indirectly to a deduction under this Subdivision;
the Commissioner may refuse to allow a deduction under this Subdivision:
(d) in a case to which subparagraph (b)(i) applies - in relation to the substituted unit; or
(e) in a case to which subparagraph (b)(ii) applies - in relation to the original unit or the substituted unit.
A reference in this section to a unit of property includes a reference to a portion of a unit of property.
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