Taxation Ruling IT 78 (Addendum exists) - Investment allowance: petroleum products pipeline

What this ruling is about: Consideration has been given to the question of whether the costs of trenching and backfilling for an underground petroleum products pipeline form part of the capital cost of a pipeline for depreciation purposes and also qualify as "eligible expenditure" for investment allowance purposes.


Ruling: 2. It is considered that the costs of trenching and backfilling for a petroleum products pipeline would constitute an essential part of the installation cost of an underground pipeline. The view held is that such costs form part of the capital cost of a pipeline for depreciation purposes and qualify as eligible expenditure for purposes of calculating the investment allowance. Commissioner of Taxation 4 March 1980




View the Addendum notice for this document. | Date original memo issued: 04.03.80


Related rulings: IT 78A
Legislative references: ITAA 54 ITAA 82AA ITAA 82AB ITAA 82AC ITAA 82AD ITAA 82AE ITAA 82AF ITAA 82AG ITAA 82AH ITAA 82AHA ITAA 82AI ITAA 82AJ ITAA 82AK ITAA 82AL ITAA 82AM ITAA 82AN ITAA 82AO ITAA 82AP ITAA 82APA ITAA 82AQ
Subject references: depreciation investment allowance petroleum products pipeline