Document ID: chunk:federal_register_of_legislation:C2004C01190:clause:2_244:p2
Version: federal_register_of_legislation:C2004C01190
Segment Type: clause
Provision Reference: sch 2 cl 244 (pt 2/6)
Character Range: 164196–166834

from the *tax exempt vendor at the acquisition time is a privatised asset.

58‑10  When an asset is acquired in connection with the acquisition of a business

 (1) A *depreciating asset is taken to be acquired in connection with the acquisition of a *business from the *exempt entity if and only if:
 (a) the asset was used by the exempt entity in carrying on a business and the purchaser or another person uses the asset in carrying on the business; or
 (b) subsection (2) applies.

 (2) This subsection applies if:
 (a) the asset was used by the *exempt entity in performing functions, or engaging in activities, that did not constitute the carrying on of a *business by the exempt entity and the asset is used by the purchaser or another person in performing those functions or engaging in those activities as part of carrying on a business; or
 (b) all of these subparagraphs apply:
 (i) the acquisition by the purchaser of the asset was connected with the acquisition of another asset by the purchaser or another person from the exempt entity or from an *associate of the exempt entity;
 (ii) ownership of the other asset gives the purchaser or other person a right, or imposes on the purchaser or other person an obligation, to perform functions or engage in activities as part of the carrying on of a business or confers on the purchaser or other person a commercial advantage or opportunity in connection with performing functions or engaging in activities as part of the carrying on of a business;
 (iii) the asset is used by the purchaser or other person in performing those functions or engaging in those activities under the right or obligation or in taking the benefit of the advantage or opportunity; or
 (c) the asset was acquired by the purchaser under an *arrangement under which the purchaser or another person acquired another asset from the exempt entity or from an associate of the exempt entity and:
 (i) the other asset is taken by paragraph (1)(a), or by paragraph (a) or (b) of this subsection; or
 (ii) where the other asset is not a depreciating asset, it would, if it were a depreciating asset, be taken by paragraph (1)(a), or by paragraph (a) or (b) of this subsection;
  to be acquired in connection with the acquisition of a business from the exempt entity.

 (3) Paragraphs (2)(a), (b) and (c) do not apply if the asset is used by the purchaser solely to derive assessable income from the provision of office or residential accommodation.

Subdivision 58‑B—Calculating decline in value of privatised assets under Division 40

Table of sections

58‑60 Purpose of rules in this Subdivision
58‑65 Choice of