Document ID: chunk:federal_register_of_legislation:C2004A00445:clause:1_4:p1
Version: federal_register_of_legislation:C2004A00445
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 1/3)
Character Range: 26024–29090

4                                    to an entity with which you are not dealing at *arm's length, for no consideration or for less than the part's market value at the time of the assignment  the greater of:
                                                                                                                                                                                                • so much of your *unrecouped expenditure on the old spectrum licence as is reasonably attributable to the part; and
                                                                                                                                                                                                • the part's market value at the time of the assignment

380‑65  Effect if the amount arising does not exceed your unrecouped expenditure

 (1) This section sets out the effect of *replacing some or all of an *old spectrum licence if the *amount arising from the replacement does not exceed your *unrecouped expenditure on the old spectrum licence just before the replacement.

 (2) Your *unrecouped expenditure is reduced by the *amount arising from the *replacement when the replacement happens.

 (3) Work out how much of your remaining *unrecouped expenditure on the *old spectrum licence is reasonably attributable to the *part of the *spectrum specified in the *new spectrum licence.

Note: This amount is also used to work out your expenditure on the new spectrum licence. See Case 3 in the table in subsection 380‑25(2).

 (4) If you continue to hold the *old spectrum licence after the *replacement, your *unrecouped expenditure is further reduced (but not beyond nil) by the amount in subsection (3) when the replacement happens.

 (5) On the other hand, if you no longer hold the *old spectrum licence after the *replacement, your *unrecouped expenditure is further reduced to nil (if it is not nil already) just after the replacement.

 (6) Whether or not you continue to hold the *old spectrum licence after the *replacement, if you used it in the *current year before that happened for the *purpose of producing assessable income, you can deduct for the current year the amount worked out as follows.

      How much you can deduct
           Step 1. Divide the amount in subsection (3) by the number of income years from the start of the current year to the end of the income year in which the old spectrum licence expires or would have expired if it hadn't been replaced.
           Step 2. Work out the number of days in the current year before the replacement on which you used the old spectrum licence for the purpose of producing assessable income.
           Step 3. Divide the result in step 2 by the number of days in the current year.
           Step 4. Multiply the results in steps 1 and 3. This is the amount you can deduct under this section.
Note: You may also be able to deduct an amount for the current year under section 380‑10 if you continue to hold the old spectrum licence after the replacement.

380‑70  Effect if the