Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p48
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 48/54)
Character Range: 1208530–1211184

unpaid amount for each day in the period that:
 (a) begins on the day on which the amount was due to be paid; and
 (b) ends on the last day on which, at the end of the day, any of the following remains unpaid:
 (i) the assessed build to rent development misuse tax;
 (ii) general interest charge on any of the assessed build to rent development misuse tax.
Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.

Division 45—Disposal of leases and leased plant

Guide to Division 45

45‑1  What this Division is about
      This Division is designed to prevent tax being avoided through:

                (a) the disposal of leased plant, or an interest in leased plant; or
                (b) the disposal of a partnership interest in a partnership that leased plant; or
                (c) the disposal of shares in a 100% subsidiary that leased plant;

      where amounts have been deducted for the decline in value of the plant.
      It includes amounts in assessable income. Any benefit received, and any reduction in a liability, is taken into account in calculating the amounts included.
      Where the disposal of shares in a 100% subsidiary is involved, the companies in the former wholly‑owned group may be made jointly and severally liable for tax that the former subsidiary does not pay.

Table of sections

Operative provisions
45‑5 Disposal of leased plant or lease
45‑10 Disposal of interest in partnership
45‑15 Disposal of shares in 100% subsidiary that leases plant
45‑20 Disposal of shares in 100% subsidiary that leases plant in partnership
45‑25 Group members liable to pay outstanding tax
45‑30 Reduction for certain plant acquired before 21.9.99
45‑35 Limit on amount included for plant for which there is a CGT exemption
45‑40 Meaning of plant and written down value

Operative provisions

45‑5  Disposal of leased plant or lease
 (1) An amount is included in your assessable income if:
 (a) you have deducted or can deduct an amount for the decline in value of *plant; and
 (b) for most of the time when you *held the plant, you leased it to another entity; and
 (c) all or part of the lease period occurred on or after 22 February 1999; and
 (d) on or after that day, you dispose of the plant or an interest in the plant, and that disposal constitutes a *balancing adjustment event; and
 (e) the sum of the following amounts is more than the plant's *written down value or of that part of it that is attributable to that interest:
 (i) the money you receive or are entitled to receive for the disposal;
 (ii) the amount of any reduction in a liability of yours as a result