Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_6:p13
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 13/18)
Character Range: 146778–149522

the same way to section 40‑755.

40‑765  Non‑arm's length transactions

  If you incurred capital expenditure under an *arrangement and:
 (a) there is at least one other party to the arrangement with whom you did not deal at *arm's length; and
 (b) apart from this section, the amount of the expenditure would be more than the *market value of what it was for;
the amount of expenditure you take into account under this Subdivision is that market value.

Subdivision 40‑I—Capital expenditure that is deductible over time

Guide to Subdivision 40‑I

40‑825  What this Subdivision is about

      You can deduct amounts for certain capital expenditure associated with projects you carry on. You deduct the amounts over the life of the project using a pool.
      You can also deduct amounts for certain business related costs. You deduct these amounts over 5 years.

Table of sections

Operative provisions

40‑830 Project pools
40‑835 Reduction of deduction
40‑840 Meaning of project amount
40‑845 Project life
40‑855 When you start to deduct amounts for a project pool
40‑860 Meaning of mining capital expenditure
40‑865 Meaning of transport capital expenditure
40‑870 Meaning of transport facility
40‑875 Meaning of processed minerals and minerals treatment
40‑880 Business related costs
40‑885 Non‑arm's length transactions

[This is the end of the Guide.]

Operative provisions

40‑830  Project pools

 (1) You can allocate *project amounts to a project pool.

 (2) You can deduct amounts for *project amounts that are allocated to the project pool.

 (3) You calculate your deduction for an income year for a project pool in this way:
where:

DV project pool life is:
 (a) the *project life of the project; or
 (b) if its project life has been recalculated—its most recently recalculated project life.

pool value is:
 (a) for the first income year that a *project amount is allocated to the pool—the sum of the project amounts allocated to the pool for that year; or
 (b) for a later income year—the sum of the pool's *closing pool value for the previous income year and any project amounts allocated to the pool for the later year.

 (4) If, in an income year, you abandon, sell or otherwise dispose of a project for which you have a project pool, you can deduct for that year the sum of the pool's *closing pool value for the previous income year and any *project amounts allocated to the pool for the income year.

 (5) Your assessable income for that income year includes any amount you receive for the abandonment, sale or other disposal.

 (6) Your assessable income for an income year includes other capital amounts that you derive in that year in relation to a *project amount allocated to your project pool or in relation to