Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 3/54)
Character Range: 1093344–1096071

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 to comply with the notice.
Penalty: 10 penalty units.

Giving the notice to a partnership
 (5) If the entity to whom the notice is given 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.
 (6) A partner must not intentionally refuse or fail to comply with that obligation.
Penalty: 10 penalty units.
 (7) Subsection (6) does not apply if another