Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:10_4:p2
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 10 cl 4 (pt 2/8)
Character Range: 239967–242619

or in relation to the act or transaction, the expenditure is taken to be only so much (if any) of the expenditure as would have been incurred if they had been dealing with each other at arm's length in relation to the arrangement, or in relation to the act or transaction.

376‑180  Expenditure incurred by prior production companies

 (1) For the purposes of this Division, if a company (the incoming company) takes over the *making of a *film from another company (the outgoing company):
 (a) expenditure incurred in relation to the film by the outgoing company is taken to have been incurred in relation to the film by the incoming company; and
 (b) for the purposes of determining the extent to which that expenditure is *qualifying Australian production expenditure of the incoming company, the incoming company is taken:
 (i) to have been an Australian resident at any time when the outgoing company was an Australian resident; and
 (ii) to have had a *permanent establishment in Australia at any time when the outgoing company had a permanent establishment in Australia; and
 (iii) to have had an *ABN at any time when the outgoing company had an ABN; and
 (c) expenditure that the incoming company incurs in order to be able to take over the making of the film is to be disregarded for the purposes of this Division; and
 (d) any activities carried out, and arrangements made, by the outgoing company in relation to the film are taken, for the purposes of subparagraph 376‑20(5)(b)(ii) and paragraphs 376‑20(5)(c), 376‑45(5)(b) and 376‑65(1)(a), to have been carried out or made by the incoming company in relation to the film.

 (2) For the purposes of subsection (1):
 (a) expenditure incurred on the *film by the outgoing company includes expenditure that the outgoing company is itself taken to have incurred on the film because of the operation of subsection (1); and
 (b) the outgoing company is taken:
 (i) to have been an Australian resident at any time when the outgoing company is taken to have been an Australian resident because of the operation of subsection (1); and
 (ii) to have had a *permanent establishment in Australia at any time when the outgoing company is taken to have had a permanent establishment in Australia because of the operation of subsection (1); and
 (iii) to have had an *ABN at any time when the outgoing company is taken to have had an ABN because of the operation of subsection (1); and
 (c) activities carried out by the outgoing company in relation to the film include activities that the outgoing company is taken to have carried out in relation to the film because of the operation of subsection (1);