Document ID: chunk:federal_register_of_legislation:C2025C00014:section:52a:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 52A (pt 2/6)
Character Range: 374736–377387

reasonable in the circumstances that a deduction be allowable to the taxpayer in respect of that value.
 (2B) Where:
 (a) the value of any prescribed property that:
 (i) was acquired by a taxpayer after 24 September 1978 and before the commencement of this subsection or is acquired after the commencement of this subsection; and
 (ii) was or is used by the taxpayer in the carrying on or carrying out of any profit‑making undertaking or scheme;
  would, but for this subsection, be taken into account for the purpose of ascertaining whether or not any profit arose, or any loss was incurred, from the carrying on or the carrying out of the undertaking or scheme and for the purpose of ascertaining the amount of any such profit or loss; and
 (b) the Commissioner considers that it would be unreasonable that the value of the property be taken into account for those purposes to the extent to which the value would, but for this subsection, be taken into account for those purposes;
the value of the property shall be taken into account for those purposes to the extent only that the Commissioner considers that it is reasonable in the circumstances that that value be taken into account for those purposes.
 (3) In forming an opinion for the purposes of subsection (1) or (2A) as to the extent to which it is reasonable that a deduction be allowable to a taxpayer in respect of expenditure incurred in the purchase or acquisition of prescribed property or in respect of the value of prescribed property, as the case may be, or in forming an opinion for the purposes of subsection (2) or (2B) as to the extent to which it is reasonable that expenditure incurred by a taxpayer in the purchase or acquisition of prescribed property should be taken into account for the purposes referred to in subsection (2) or that the value of prescribed property should be taken into account for the purposes referred to in subsection (2B), as the case may be:
 (a) if the taxpayer expended moneys in purchasing or acquiring the prescribed property—the Commissioner shall have regard to the circumstances in which, and the person or persons from whom, the taxpayer obtained moneys:
 (i) that were expended by the taxpayer in purchasing or acquiring the prescribed property; or
 (ii) that, in the opinion of the Commissioner, were obtained by, or paid to, the taxpayer to enable the taxpayer to expend moneys in purchasing or acquiring the prescribed property;
 (b) if the taxpayer borrowed from another person (in this paragraph referred to as the lender) moneys that were expended by the taxpayer in purchasing or acquiring the prescribed property or moneys that, in