Document ID: chunk:federal_register_of_legislation:C2025C00029:section:8:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 8 (pt 6/7)
Character Range: 932694–935356

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; and
 (c) if section 40‑102 applied to the asset at any time:
 (i) the effective life that the associate would have used if section 40‑102 had not applied to the asset; and
 (ii) the relevant time that applied to the associate under subsection 40‑102(3).
 (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.

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.

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