Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_13:p13
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 13 (pt 13/13)
Character Range: 410075–411544

or all of the trees are felled during the income year for sale, or for use in manufacture, by you for the *purpose of producing assessable income; or
 (b) some or all of the trees are felled during the income year under a right you granted to another entity in consideration of payments as or by way of  *royalty.
(It does not matter when you acquired the right.)

How much you can deduct for costs of acquiring land or right

 (4) You can deduct for the income year so much of the price you paid as is attributable to the trees covered by a paragraph of subsection (2) or (3).

 (5) If you can deduct an amount because of paragraph (2)(c), you can also deduct for the income year so much of any other capital expenditure you incurred as is attributable to acquiring the trees covered by that paragraph (except so far as you have deducted it, or can deduct it, for any income year under a provision of this Act outside this section).

Non-arm's length transactions

 (6) If:
 (a) you can deduct an amount under this section for expenditure incurred in connection with a transaction; and
 (b) the parties to the transaction did not deal with each other at arm's length; and
 (c) the amount of the expenditure is greater than the market value of what the expenditure is for;
the amount of the expenditure is instead taken to be that market value. This has effect for the purposes of working out what you can deduct under this section.

[The next Chapter is Chapter 3.]