Document ID: chunk:federal_register_of_legislation:C2025C00014:section:26ag:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 26AG (pt 1/6)
Character Range: 198994–201502

26AG  Certain film proceeds included in assessable income
 (1) Where:
 (a) under a contract entered into on or after 1 October 1980, a taxpayer has expended, or is deemed by former section 124ZAP to have expended, capital moneys in producing, or by way of contribution to the cost of producing, a film;
 (b) by reason of the moneys having been expended, the taxpayer became the owner of an interest in the copyright in the film; and
 (c) a deduction has been allowed, or is allowable, to the taxpayer under former section 124ZAF or 124ZAFA in respect of some or all of those moneys;
this section applies, and shall be deemed always to have applied, in relation to the taxpayer in relation to a year of income (whether commencing before or after the commencement of this section), to:
 (d) any amount derived by the taxpayer in the year of income from sources in or out of Australia as consideration for the use of, or the right to use, the copyright or the film, to the extent to which the amount derived is attributable to the interest referred to in paragraph (b); and
 (e) any amount (other than an amount to which paragraph (d) applies) receivable by the taxpayer from sources in or out of Australia as consideration in respect of the disposal, in the year of income, of the whole or a part of the interest referred to in paragraph (b).
 (2) The assessable income of a taxpayer of a year of income shall include amounts to which this section applies in relation to the taxpayer in relation to the year of income.
 (3) Where:
 (a) for any reason, including:
 (i) the formation or dissolution of a partnership; or
 (ii) a variation in the constitution of a partnership or in the interests of the partners;
  a change has occurred in the ownership of, or in the interests of persons in, a copyright in a film;
 (b) the person, or one or more of the persons, who owned the copyright before the change has or have an interest in the copyright after the change; and
 (c) any person (in this subsection referred to as the relevant person) who had an interest in the copyright before the change:
 (i) did not have an interest in the copyright after the change; or
 (ii) had a lesser interest in the copyright after the change;
the following provisions have effect:
 (d) if the relevant person did not have an interest in the copyright after the change, the relevant person shall be deemed, for the purposes of subsection (1), to have disposed of the whole of his or her interest in the copyright at the time when