Document ID: chunk:federal_register_of_legislation:C2004A00684:clause:1_4:p1
Version: federal_register_of_legislation:C2004A00684
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 1/2)
Character Range: 13123–15848

4                                              Trademarks, patents, copyrights and similar rights            Their *reduced cost base

 (3) The value of such an asset is worked out:
 (a) as at the end of the income year; or
 (b) if you stopped carrying on the *business activity during the year:
 (i) as at the time you stopped; or
 (ii) if you disposed of the asset before that time in the course of stopping carrying on the activity—as at the time you disposed of it.

 (4) However, these assets are not counted for this test:
 (a) assets that are real property or interests in real property that are taken into account for that year under section 35‑40;
 (b) *cars, motor cycles and similar vehicles.

35‑50  Apportionment

  If an asset that is being taken into account under section 35‑40 or 35‑45 is used during an income year partly in carrying on the relevant *business activity and partly for other purposes, only that part of its *reduced cost base, market value or other value that is attributable to its use in carrying on the business activity in that year is taken into account for that section.

35‑55  Commissioner's discretion

 (1) The Commissioner may decide that the rule in section 35‑10 does not apply to a *business activity for one or more income years if the Commissioner is satisfied that it would be unreasonable to apply that rule because:
 (a) the business activity was or will be affected in that or those income years by special circumstances outside the control of the operators of the business activity, including drought, flood, bushfire or some other natural disaster; or

Note: This paragraph is intended to provide for a case where a business activity would have satisfied one of the tests if it were not for the special circumstances.
 (b) the business activity has started to be carried on and:
 (i) because of its nature, it has not yet satisfied one of the tests set out in section 35‑30, 35‑35, 35‑40 or 35‑45; and
 (ii) there is an objective expectation, based on evidence from independent sources (where available) that, within a period that is commercially viable for the industry concerned, the activity will either meet one of those tests or will produce assessable income for an income year greater than the deductions attributable to it for that year (apart from the operation of subsection 35‑10(2)).

Note: This paragraph is intended to cover a business activity that has a lead time between the commencement of the activity and the production of any assessable income. For example, an activity involving the planting of hardwood trees for harvest, where many years would pass before the activity could reasonably be expected to produce income.

 (2) The Commissioner must