Commonwealth Numbered Acts

Income Tax Assessment Amendment Act 1983 No. 14 of 1983 - SECT 13

13. Section 57AH of the Principal Act is amended-

   (a)  by omitting paragraph (3) (a) and substituting the following
        paragraph:

''(a) the depreciation allowable to a taxpayer under this Act in relation to a
year of income in respect of a unit of property to which this section applies
in relation to the year of income is-

        (i)    in the case of a unit of property to which sub-paragraph (ii)
               does not apply-20% of the cost of the unit; or

        (ii)   in the case of a unit of property that-

                (A)  was acquired by the taxpayer under a contract entered
                     into after 19 July 1982; or

                (B)  was constructed by the taxpayer and commenced to be
                     constructed after 19 July 1982,

331/3% of the cost of the unit;'';

   (b)  by omitting paragraph (3) (c) and substituting the following
        paragraph:

''(c) no depreciation calculated in accordance with this section is allowable
to the taxpayer in respect of that unit in relation to any year of income
after-

        (i)    in the case of a unit of property to which sub-paragraph (a)
               (i) applies-the fourth year of income succeeding the relevant
               year of income; or

        (ii)   in the case of a unit of property to which sub-paragraph (a)
               (ii) applies-the second year of income succeeding the relevant
               year of income.'';

   (c)  by inserting after sub-section (8) the following sub-sections:

''(8A) Where the Commissioner is satisfied that-

   (a)  on or before 19 July 1982 a taxpayer-

        (i)    owned a unit of property;

        (ii)   entered into a contract or arrangement for the acquisition of a
               unit of property; or

        (iii)  commenced the construction of a unit of property,

(which unit of property is, in each case, referred to in this sub-section as
the 'original unit');

   (b)  after 19 July 1982 and at a time when-

        (i)    in a case to which sub-paragraph (a) (i) applies-the taxpayer
               was the owner of the original unit;

        (ii)   in a case to which sub-paragraph (a) (ii) applies-the taxpayer
               was a party to the contract or arrangement or was, by reason of
               the original unit having been acquired in pursuance of that
               contract or arrangement, the owner of the original unit; or

        (iii)  in a case to which sub-paragraph (a) (iii) applies-the taxpayer
               had yet to complete the construction of the original unit or
               was, by reason of the original unit having been constructed by
               the taxpayer, the owner of the original unit,

the taxpayer entered into a scheme in pursuance of which-

        (iv)   the taxpayer became the owner of the original unit (otherwise
               than in pursuance of the contract or arrangement referred to in
               sub-paragraph (a) (ii) or, in a case to which sub-paragraph (a)
               (iii) applies, by reason of the unit having been constructed by
               the taxpayer); or

        (v)    the taxpayer became the lessee or end-user of the original
               unit;

   (c)  depreciation ascertained in accordance with sub-paragraph (3) (a) (ii)
        in relation to the original unit would, but for this sub-section, be
        allowable to-

        (i)    in a case to which sub-paragraph (b) (iv) applies-the taxpayer;
               or

        (ii)   in a case to which sub-paragraph (b) (v) applies-a person who
               was the owner of the original unit at any time when the
               taxpayer was the lessee or end-user, as the case may be, of the
               original unit; and

   (d)  in a case to which sub-paragraph (b) (iv) applies-the taxpayer entered
        into the scheme for the purpose, or for purposes that included the
        purpose, of obtaining a deduction for depreciation ascertained in
        accordance with sub-paragraph (3) (a) (ii),

the Commissioner may apply this Division for the purposes of ascertaining the
depreciation allowable in relation to the original unit in relation to the
taxpayer or a person referred to in sub-paragraph (c) (ii), as the case may
be, as if-

   (e)  in a case to which sub-paragraph (b) (iv) applies-the taxpayer became
        the owner of the original unit in pursuance of a contract entered into
        on the date on which-

        (i)    in a case to which sub-paragraph (a) (i) applies-the taxpayer
               entered into the contract or arrangement for the acquisition of
               the original unit or commenced the construction of the original
               unit, as the case may be, in pursuance of which the taxpayer
               became the owner of the original unit for the purposes of
               sub-paragraph (a) (i);

        (ii)   in a case to which sub-paragraph (a) (ii) applies-the taxpayer
               entered into the contract or arrangement referred to in
               sub-paragraph (a) (ii); or

        (iii)  in a case to which sub-paragraph (a) (iii) applies-the taxpayer
               commenced the construction referred to in sub-paragraph (a)
               (iii); or

   (f)  in a case to which sub-paragraph (b) (v) applies-the person referred
        to in sub-paragraph (c) (ii) became the owner of the original unit in
        pursuance of a contract entered into on the date on which-

        (i)    in a case to which sub-paragraph (a) (i) applies-the taxpayer
               entered into the contract or arrangement for the acquisition of
               the original unit or commenced the construction of the original
               unit, as the case may be, in pursuance of which the taxpayer
               became the owner of the original unit for the purposes of
               sub-paragraph (a) (i);

        (ii)   in a case to which sub-paragraph (a) (ii) applies-the taxpayer
               entered into the contract or arrangement referred to in
               sub-paragraph (a) (ii); or

        (iii)  in a case to which sub-paragraph (a) (iii) applies-the taxpayer
               commenced the construction referred to in sub-paragraph (a)
               (iii).

''(8B) Where the Commissioner is satisfied that-

   (a)  on or before 19 July 1982 a taxpayer-

        (i)    owned a unit of property;

        (ii)   entered into a contract or arrangement for the acquisition of a
               unit of property; or

        (iii)  commenced the construction of a unit of property,

(which unit of property is, in each case, referred to in this sub-section as
the 'original unit');

   (b)  after 19 July 1982 and at a time when-

        (i)    in a case to which sub-paragraph (a) (i) applies-the taxpayer
               was the owner of the original unit;

        (ii)   in a case to which sub-paragraph (a) (ii) applies-the taxpayer
               was a party to the contract or arrangement or was, by reason of
               the original unit having been acquired in pursuance of that
               contract or arrangement, the owner of the original unit; or

        (iii)  in a case to which sub-paragraph (a) (iii) applies-the taxpayer
               had yet to complete the construction of the original unit or
               was, by reason of the original unit having been constructed by
               the taxpayer, the owner of the original unit,

the taxpayer entered into a scheme in pursuance of which-

        (iv)   the taxpayer became the owner; or

        (v)    the taxpayer became the lessee or end-user,

of a unit of property (in this sub-section 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;

   (c)  depreciation ascertained in accordance with sub-paragraph (3) (a) (ii)
        in relation to the substituted unit would, but for this sub-section,
        be allowable to-

        (i)    in a case to which sub-paragraph (b) (iv) applies-the taxpayer;
               or

        (ii)   in a case to which sub-paragraph (b) (v) applies-a person who
               was the owner of the substituted unit at any time when the
               taxpayer was the lessee or end-user, as the case may be, of the
               substituted unit; and

   (d)  any of the following conditions is satisfied, namely:

        (i)    in a case to which sub-paragraphs (b) (ii) and (iv) or (b)
               (iii) and (iv) apply, where the taxpayer was not the owner of
               the original unit at the time when he entered into the
               scheme-the taxpayer entered into the scheme for the purpose, or
               for purposes that included the purpose, of obtaining a
               deduction for depreciation ascertained in accordance with
               sub-paragraph (3) (a) (ii);

        (ii)   in a case to which sub-paragraphs (b) (ii) and (v) or (b) (iii)
               and (v) apply, where the taxpayer was not the owner of the
               original unit at the time when he entered into the scheme-the
               taxpayer entered into the scheme for the purpose, or for
               purposes that included the purpose, of benefiting, directly or
               indirectly, from the application of sub-paragraph (3) (a) (ii)
               in relation to the substituted unit in relation to a person
               referred to in sub-paragraph (c) (ii); or

        (iii)  in a case to which-

                (A)  sub-paragraphs (b) (ii) and (iv), (b) (ii) and (v), (b)
                     (iii) and (iv) or (b) (iii) and (v) apply, where the
                     taxpayer was the owner of the original unit at the time
                     when he entered into the scheme; or

                (B)  sub-paragraphs (b) (i) and (iv) or (b) (i) and (v) apply,

it could be reasonably expected that the taxpayer would not have entered into
the scheme but for the operation of sub-section (8A),

the Commissioner may apply this Division for the purposes of ascertaining the
depreciation allowable in relation to the substituted unit in relation to the
taxpayer or a person referred to in sub-paragraph (c) (ii), as the case may
be, as if-

   (e)  in a case to which sub-paragraph (b) (iv) applies-the taxpayer became
        the owner of the substituted unit in pursuance of a contract entered
        into on the date on which-

        (i)    in a case to which sub-paragraph (a) (i) applies-the taxpayer
               entered into the contract or arrangement for the acquisition of
               the original unit or commenced the construction of the original
               unit, as the case may be, in pursuance of which the taxpayer
               became the owner of the original unit for the purposes of
               sub-paragraph (a) (i);

        (ii)   in a case to which sub-paragraph (a) (ii) applies-the taxpayer
               entered into the contract or arrangement referred to in
               sub-paragraph (a) (ii); or

        (iii)  in a case to which sub-paragraph (a) (iii) applies-the taxpayer
               commenced the construction referred to in sub-paragraph (a)
               (iii); or

   (f)  in a case to which sub-paragraph (b) (v) applies-the person referred
        to in sub-paragraph (c) (ii) became the owner of the substituted unit
        in pursuance of a contract entered into on the date on which-

        (i)    in a case to which sub-paragraph (a) (i) applies-the taxpayer
               entered into the contract or arrangement for the acquisition of
               the original unit or commenced the construction of the original
               unit, as the case may be, in pursuance of which the taxpayer
               became the owner of the original unit for the purposes of
               sub-paragraph (a) (i);

        (ii)   in a case to which sub-paragraph (a) (ii) applies-the taxpayer
               entered into the contract or arrangement referred to in
               sub-paragraph (a) (ii); or

        (iii)  in a case to which sub-paragraph (a) (iii) applies-the taxpayer
               commenced the construction referred to in sub-paragraph (a)
               (iii).

''(8C) For the purposes of sub-sections (8A) and (8B), a taxpayer shall be
taken to be the end-user of a unit of property if, under a scheme to which the
taxpayer is a party-

   (a)  at a time when the unit of property is owned by a person other than
        the taxpayer, the unit is, or is to be, used (whether or not by that
        person), wholly or principally, in connection with-

        (i)    the production of goods for the taxpayer;

        (ii)   the supply of goods to the taxpayer; or

        (iii)  the provision of services to the taxpayer; and

   (b)  the taxpayer controls, or is able to control, directly or indirectly,
        the use of the property in or in connection with the production of the
        goods, the supply of the goods or the provision of the services, as
        the case may be.

''(8D) In this section-

'goods' includes whatever is capable of being owned or used;

'lease', in relation to a unit of property, includes-

   (a)  any scheme under which a right to use the unit of property is granted
        by the owner to another person; and

   (b)  any scheme under which a right to use the unit of property, being a
        right derived directly or indirectly from a right referred to in
        paragraph (a), is granted by a person to another person,

but does not include a hire-purchase agreement;

'person' includes a partnership and a person in the capacity of the trustee of
a trust estate;

'scheme' includes-

   (a)  any agreement, arrangement, understanding, promise or undertaking,
        whether express or implied and whether or not enforceable, or intended
        to be enforceable, by legal proceedings; and

   (b)  any scheme, plan, proposal, action, course of action or course of
        conduct, whether unilateral or otherwise.''; and

   (d)  by omitting from sub-section (9) ''sub-sections (6), (7) and (8)'' and
        substituting ''sub-section (6), (7), (8), (8A), (8B), (8C) or (8D)''.