Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_10:p12
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 10 (pt 12/13)
Character Range: 50778–53508

made, applies to that income year and all later income years.

Exception: recalculating effective life

 (3) However, subsection (2) does not apply to a choice to recalculate the *effective life of a *depreciating asset under section 40‑110.

40‑135  Certain anti‑avoidance provisions

  These anti‑avoidance provisions:
 (a) section 51AD (Deductions not allowable in respect of property under certain leveraged arrangements) of the Income Tax Assessment Act 1936;
 (b) Division 16D (Certain arrangements relating to the use of property) of Part III of that Act;
apply to your deductions under this Division for a *depreciating asset you *hold as if you were the owner of the asset instead of any other person.

40‑140  Getting tax information from associates

 (1) If you acquire a *depreciating asset from an *associate of yours where the associate has deducted or can deduct an amount for the asset under this Division, you may give the associate a written notice requiring the associate to tell you:
 (a) the method the associate was using to work out the decline in value of the asset; and
 (b) the *effective life the associate was using.

 (2) The notice must:
 (a) be given within 60 days of your acquiring the asset; and
 (b) specify a period of at least 60 days within which the information must be given; and
 (c) set out the effect of subsection (3).

Note: Subsections (4) and (5) explain how this subsection operates if the associate is a partnership.

Requirement to comply with notice

 (3) The *associate must not intentionally refuse or fail to comply with the notice.

Penalty: 10 penalty units.

Giving the notice to a partnership

 (4) If the *associate is a partnership:
 (a) you may give it to the partnership by giving it to any of the partners (this does not limit how else you can give it); and
 (b) the obligation to comply with the notice is imposed on each of the partners (not on the partnership), but may be discharged by any of them.

 (5) A partner must not intentionally refuse or fail to comply with that obligation, unless another partner has already complied with it.

Penalty: 10 penalty units.

Limits on giving a notice

 (6) Only one notice can be given in relation to the same *depreciating asset.

40‑145  Application of Criminal Code

  The Criminal Code applies to all offences in this Division.

Subdivision 40‑C—Cost

Guide to Subdivision 40‑C

40‑170  What this Subdivision is about

      Your cost of a depreciating asset is a component in working out the amounts you can deduct for it.
      There are 2 elements of the cost of a depreciating asset. This Subdivision shows you how to work out those elements.

Table of sections

Operative provisions

40‑175 Cost
40‑180