Document ID: chunk:federal_register_of_legislation:C2025C00014:section:73a:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 73A (pt 2/3)
Character Range: 406556–409199

construction or making commenced, or that acquisition occurred, before 21 November 1987;
 (ii) any contract in respect of that construction, making or acquisition was entered into before 21 November 1987; and
 (b) if the expenditure was incurred after 20 November 1987—the taxpayer intended, on 20 November 1987, that:
 (i) scientific research, being research related to a business carried on by the taxpayer for the purpose of gaining or producing assessable income, would be carried on by or on behalf of the taxpayer in the building; and
 (ii) the building, part of the building, alteration or addition, as the case may be, would be of use for scientific research purposes only.
 (3) Where any expenditure or payment to which this section refers is incurred or made outside Australia and the business in relation to which it is so incurred or made is carried on partly in and partly out of Australia, the deduction allowable under this section shall be such part of the amount which would otherwise be allowable as the Commissioner considers reasonable in the circumstances.
 (4) Where any expenditure has been allowed or is allowable as a deduction under subsection (2) and:
 (a) the taxpayer sells, transfers or otherwise disposes of the building or any part thereof; or
 (b) the building or any part thereof is destroyed;
the termination value of the building or part shall, to the extent of the expenditure so allowed or allowable as a deduction, be included in the assessable income of the year of income in which the disposal or destruction occurs:
Provided that where the Commissioner is of opinion that part only, or no part, of that termination value relates to the disposal or destruction of any property which was acquired or created by that expenditure, that part only, or no part, as the case may be, of the termination value shall be taken into account for the purposes of this subsection.
 (4A) If:
 (a) a person has purchased from another person a building, or part of a building, where the vendor had incurred capital expenditure of a kind in respect of which deductions are or have been allowable under subsection (2); and
 (b) it would be concluded that, having regard to any connection between the vendor and the purchaser or to any other relevant circumstances, those persons were not dealing with each other at arm's length; and
 (c) the purchase price is greater or lesser than the market value of the building, or the part of the building, at the time of the purchase;
the purchase price is, for all purposes of the application of this Act in relation to the vendor, taken to have been the amount of the market value