Document ID: chunk:federal_register_of_legislation:C2004A02159:body:0:p3
Version: federal_register_of_legislation:C2004A02159
Segment Type: other
Provision Reference: 
Character Range: 4808–7380

is not dealt with by the taxpayer in the prescribed manner on the first day of the year of income, the reference in paragraph (a) of sub-section (1) to the depreciated value of the unit of property at the beginning of the year of income shall be read as a reference to the depreciated value of the unit of property at the time during the year of income when it is first dealt with by the taxpayer in the prescribed manner.
    "(1c) For the purposes of sub-sections (1a) and (1b), a unit of property shall be taken to be dealt with by a taxpayer in the prescribed manner at a particular time if—
          (a) the property is used by the taxpayer at that time for the purpose of producing assessable income; or

          (b) the property is, at that time, installed ready for use for the purpose of producing assessable income and held in reserve by the taxpayer. "; and
     (b) by adding at the end thereof the following sub-section:
    "(4) For the purposes of the application of paragraph (b) of sub-section (1) in calculating the depreciation allowable to a taxpayer in respect of a unit of property 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 paragraph (b) of sub-section (1) 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 paragraph (b) of sub-section (1).".
(2) Subject to sub-section (3), the amendment made by paragraph (1)(a) applies in relation to a taxpayer in relation to property acquired by the taxpayer after 25 June 1979 otherwise than under a contract entered into on or before that date.
(3) The amendment made by paragraph (1)(a) applies in relation to a