Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 82KZMGA

  (1)   A taxpayer cannot deduct expenditure in relation to which the requirements in section   82KZMG (apart from paragraph   82KZMG(2)(a)) are met if:

  (a)   the taxpayer holds the taxpayer's interest in the agreement mentioned in section   82KZMG as an initial participant in the agreement; and

  (b)   a CGT event happens in relation to that interest within 4 years after the end of the year of income in which the taxpayer first incurred expenditure under the agreement; and

  (c)   the expenditure is incurred on or before 30   June 2008.

  (1A)   Paragraph   (1)(b) does not apply to a CGT event if:

  (a)   the CGT event happens because of circumstances outside the taxpayer's control; and

Example:   The interest is compulsorily acquired.

  (b)   when the taxpayer acquired the interest, the taxpayer could not reasonably have foreseen the CGT event happening.

  (2)   Despite section   170, the Commissioner may amend the taxpayer's assessment at any time within 2 years after the end of the year of income in which the CGT event happens, for the purpose of giving effect to this section.