Document ID: chunk:federal_register_of_legislation:C2004A02159:body:0:p5
Version: federal_register_of_legislation:C2004A02159
Segment Type: other
Provision Reference: 
Character Range: 9526–12186

or is first installed ready for use for that purpose; and
     (c) no depreciation is allowable to the taxpayer in respect of that unit in relation to any year of income after the fourth year of income succeeding the relevant year of income.
"(3) For the purposes of the application of paragraph (a) of sub-section (2) in calculating the depreciation allowable to a taxpayer in respect of a unit of property to which this section applies in a case where—
     (a) section 60 does not apply in relation to the unit of property in relation to the taxpayer;
     (b) the amount that, but for this sub-section, would be the cost of the unit for the purposes of that paragraph is attributable, in whole or in part, to a transaction to which the taxpayer was a party;
     (c) the Commissioner is satisfied that, having regard to any connection between any 2 or more of the parties to the transaction and to any other relevant circumstances, those parties were not dealing with each other at arm's length in relation to the transaction; and
     (d) the Commissioner is satisfied that the amount that, but for this sub-section, would be the cost of the unit for the purposes of that paragraph is greater than the amount (in this sub-section referred to as the 'arm's length amount') that would have been the cost of the unit if the parties to the transaction had dealt with each other at arm's length in relation to the transaction,
the arm's length amount shall be deemed to be the cost of that unit for the purposes of that paragraph.".

Disposal, loss or destruction of depreciated property
8. (1) Section 59 of the Principal Act is amended—
     (a) by omitting from sub-section (3) "The consideration" and substituting "Subject to sub-section (4), the consideration"; and
     (b) by adding at the end thereof the following sub-sections:
    "(4) Where, in a case where the property is disposed of by the taxpayer by sale to another person—
          (a) the Commissioner is satisfied that, having regard to any connection between the taxpayer and that other person and to any other relevant circumstances, the taxpayer and that other person were not dealing with each other at arm's length in relation to the disposal; and

          (b) the amount receivable by the taxpayer in respect of the disposal was less than the market value of the property immediately before the time of disposal and less than the depreciated value of the property immediately before the time of disposal,
    the consideration receivable by the taxpayer in respect of the disposal of the property shall be deemed to be the market value of the property immediately before the time of