Document ID: chunk:federal_register_of_legislation:C2010C00679:section:1987:p13
Version: federal_register_of_legislation:C2010C00679
Segment Type: section
Provision Reference: s 1987 (pt 13/51)
Character Range: 44151–46526

(within the meaning of section 32A) at the end of the
year of income.
Horse breeding stock - value at end of year of income
(Section applies to horse breeding stock)
  "32A.(1) This section applies in determining the value of live stock to be
taken into account at the end of the year of income if the live stock is horse
breeding stock of the taxpayer at the end of the year of income.
(Option as to value)
  "(2) Subject to subsections (3) and (4), the value of live stock to be taken
into account at the end of the year of income is to be, at the option of the
taxpayer:
  (a) the special closing value of the live stock in relation to the year of
income; or
  (b) the cost price of the live stock; or
  (c) the market selling value of the live stock.
(Adoption of other value)
  "(3) If the Commissioner is satisfied that there are circumstances which
justify the adoption by the taxpayer of some other value, the taxpayer may
adopt that other value.
(Option not exercised - value is cost price)
  "(4) If the taxpayer does not exercise the option within the time
prescribed, the value of the live stock to be taken into account at the end of
the year of income is to be the cost price of the live stock.
(What is horse breeding stock)
  "(5) For the purposes of this section, live stock is horse breeding stock of
a taxpayer at the end of the year of income if, and only if:
  (a) the live stock is a horse acquired by the taxpayer under a contract;
and
  (b) the horse has attained the age of 3 years before the end of the year of
income; and
  (c) at the end of the year of income, the horse is held by the taxpayer for
breeding purposes.
(Special closing value)
  "(6) The special closing value of a horse in relation to a year of income
is:
  (a) if the horse is a female horse which has attained the age of 12 years
before the end of the year of income - $1; or
  (b) if the reduction amount in relation to the horse in relation to the year
of income is equal to or greater than the opening value of the horse in
relation to the year of income - $1; or
  (c) in any other case - the amount worked out using the formula:
               Opening value   -   Reduction amount
where:
  'Opening value' means the opening value in relation to the horse in relation
to the year of income;
  'Reduction amount' means the reduction amount in relation to the horse in
relation