Document ID: chunk:federal_register_of_legislation:C2025C00014:section:51ad:p7
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 51AD (pt 7/10)
Character Range: 346696–349338

carriage, transmission or delivery of goods, or the provision of services, as mentioned in subparagraph (4)(b)(i).
 (15) Notwithstanding anything contained in subsections (10), (11) and (13), at any time when this section applies to property by reason of subparagraph (4)(a)(ii), the property shall be deemed not to be held, occupied or used, or held for use, by the taxpayer for the purpose of producing assessable income, or in carrying on a business for that purpose, if, at that time:
 (a) 2 or more end‑users hold rights as lessees under the lease of the property;
 (b) one or more of the end‑users (which end‑user is, or end‑users are, referred to in this subsection as the exempt end‑user) is a company, or are companies, the income of which is ordinarily exempt from income tax;
 (c) the property is, or is to be, used wholly or principally in or in connection with the conduct of operations or transactions of a kind that the exempt end‑user ordinarily engages in;
 (d) the exempt end‑user controls, will control, or is or will be able to control, directly or indirectly, that use of the property; and
 (e) in relation to those operations or transactions, the exempt end‑user derives, or is to derive, no income or income that is exempt from income tax.
 (16) Where a taxpayer has incurred expenditure for repairs to property to which this section applies or has applied in relation to the taxpayer and, but for this section, a deduction would be allowable under section 25‑10 (Repairs) of the Income Tax Assessment Act 1997 in respect of that expenditure, so much of the expenditure as the Commissioner considers appropriate shall be deemed not to be allowable, having regard to:
 (a) the period for which the taxpayer owned the property before the repairs were commenced and any part of that period during which this section applies or applied to the property in relation to the taxpayer; and
 (b) in a case to which subsection (11), (12) or (13) of this section applies or applied—the extent to which, for the time during the part of the period referred to in paragraph (a), the taxpayer was deemed to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose.
 (17) Where a taxpayer has incurred expenditure in borrowing money to finance the acquisition or construction of property to which this section applies or has applied in relation to the taxpayer and a deduction has been allowed, or would but for this section be allowable, under section 25‑25 (Borrowing expenses) of the Income Tax Assessment Act 1997 in relation to that