Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_12:p1
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 1/4)
Character Range: 236932–240153

12          you acquire in circumstances where section 73E of the Income Tax Assessment Act 1936 (R&D roll-over relief) applies                                                                                            the amount applicable under paragraph 73E(6)(a) of the Income Tax Assessment Act 1936                                                                                • car limit (42‑80)
                                                                                                                                                                                                                                                                                                                                                                                                • double deduction (42‑85)

42-70  Adjustment: acquiring a car at a discount

 (1) You must increase the cost of a *car designed mainly for carrying passengers and which you acquire at a discount if:
 (a) it is reasonable to conclude that any portion (discount portion) of the discount is referable to you or another entity selling other *plant for less than its market value; and
 (b) you, or another entity, deducted or can deduct an amount for depreciation of the other plant for any income year; and
 (c) the sum of the cost of the car and the discount portion exceeds the *car depreciation limit calculated under
section 42-345 for the *financial year in which you first use the car for any purpose.

 (2) The cost of the *car is increased by the discount portion.

Note: The termination value of the other plant is also increased by the discount portion: see section 42-205.

 (3) This section does not apply to a *car that is excluded from
section 42-80 by subsection 42-80(2).

42-75  Adjustment: non-arm's length transactions

  Common rule 2 applies for the purpose of working out the cost of *plant, but with the following modifications:
 (a) it applies to cost rather than expenditure; and
 (b) it compares the cost with the amount that would have been the cost if the parties had dealt with each other at arm's length, and substitutes that amount instead of market value.

42-80  Adjustment: car depreciation limit

 (1) If the cost of a *car designed mainly for carrying passengers would exceed the *car depreciation limit for the *financial year in which you first use the car for any purpose, your cost is reduced to that limit.

 (2) This section does not apply to a *car that, immediately before you first used it for any purpose, was specially fitted out for transporting disabled people in wheelchairs unless, at that time:
 (a) it was for your personal transportation; and
 (b) it would be covered by subitem 96(1) or 97(1) of Schedule 1 to the Sales Tax (Exemptions and Classifications) Act 1992.

42-85  Adjustment: double deduction

 (1) The cost of *plant is reduced by any portion of its cost that you have deducted or can deduct, or that has been or will be taken into account in working out an amount you can deduct, other than for depreciation.

 (2) Subsection (1) does not apply to deductions for:
 (a) research and development (section 73B of the Income Tax Assessment Act 1936);
 (b) development