Document ID: chunk:federal_register_of_legislation:C2010C00404:clause:8_20:p1
Version: federal_register_of_legislation:C2010C00404
Segment Type: clause
Provision Reference: sch 8 cl 20 (pt 1/2)
Character Range: 41209–43997

20  At the end of Subdivision 40‑J
Add:

40‑1030  Extra deduction for destruction of trees in carbon sink forest

 (1) You can deduct the amount worked out under subsection (2) for an income year if:
 (a) you or another entity incurred capital expenditure that is covered under section 40‑1010 in relation to particular trees; and
 (b) you use the land occupied by the trees for the primary and principal purpose of *carbon sequestration by the trees; and
 (c) the trees are destroyed during the income year; and
 (d) you satisfy a condition in subsection 40‑1005(5) for the trees just before they are destroyed.

 (2) Work out the amount of the deduction as follows:

      Method statement
           Step 1. Work out the total of the amounts you could have deducted under this Subdivision in relation to the trees for the period:
                  (a) starting on the first day of the income year in which the trees are established; and
                  (b) ending when the trees were destroyed;
            assuming that, during that period, you satisfied a condition in the table in subsection 40‑1005(5).
           Step 2. Subtract from the expenditure that is covered under section 40‑1010 in relation to the trees:
                  (a) the result from step 1; and
                  (b) any amount you received (under an insurance policy or otherwise) for the destruction.
            The remaining amount (if positive) is your deduction under subsection (1).
 (3) This deduction is in addition to any deduction for the income year under section 40‑1005.

40‑1035  Getting information if you acquire a carbon sink forest

 (1) This section applies if:
 (a) you or another entity incurred capital expenditure; and
 (b) the expenditure is covered under section 40‑1010 in relation to particular trees; and
 (c) you begin to satisfy a condition in the table in subsection 40‑1005(5) for the trees.

 (2) You may give the last entity (if any) that satisfied a condition mentioned in subsection 40‑1005(5) for the trees a written notice requiring the entity to give you any or all of the following information:
 (a) the amount of the expenditure covered under section 40‑1010 in relation to the trees;
 (b) the income year in which the trees were established.

 (3) The notice must:
 (a) be given within 60 days of your beginning to satisfy the condition mentioned in paragraph (1)(c); 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 (4).

Note: Subsections (5), (6) and (7) explain how this subsection operates if the entity to which the notice is to be given is a partnership.

Requirement to comply with notice

 (4) The entity to whom the notice is given must not intentionally refuse or fail