Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:11_1:p7
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 11 cl 1 (pt 7/8)
Character Range: 691372–693986

destroyed; or
 (ii) the transferee disposes of it in circumstances where Subdivision 41‑A of the Income Tax Assessment Act 1997 (which sets out Common rule 1 dealing with roll‑over relief for related entities) does not apply to the disposal; or
 (iii) for some other reason, the transferee stops using it for the purpose for which it was primarily and principally constructed or acquired; and
 (c) there has been no earlier disposal of the road or building where roll‑over relief was available under Common rule 1;
the balancing adjustment is affected in 2 ways.

 (2) First:
 (a) the total amounts deductible by the transferor under
section 124F or 124JA of the Income Tax Assessment Act 1936 in relation to the road or building; or
 (b) if there have been 2 or more prior applications of
section 124GA or 124JA of that Act in relation to the road or building—the total amounts deductible by the prior transferors under section 124F or 124JA of that Act in relation to the road or building;
are taken to have been deductible by the transferee under Subdivision 387‑G of the Income Tax Assessment Act 1997 in relation to the road or building.

 (3) Second:
 (a) the transferor's total capital expenditure (of a kind that qualified for a deduction under section 124F or 124JA of the Income Tax Assessment Act 1936) relating to the road or building; or
 (b) if there have been 2 or more prior applications of
section 124GA or 124JD of that Act—the prior transferors' total capital expenditure (of a kind that qualified for a deduction under section 124F or 124JA of that Act) relating to the road or building;
is taken to have been the transferee's total capital expenditure (of a kind that qualified for a deduction under Subdivision 387‑G of the Income Tax Assessment Act 1997) relating to the road or building.

[The next section is section 387‑505.]

387‑505  Application of Common rule 1 to disposal of road or building under new law

  If:
 (a) you deducted or can deduct amounts for capital expenditure relating to an access road or a timber mill building under Division 10A of Part III of the Income Tax Assessment Act 1936 (except section 124J of that Act) for the 1996‑97 income year or an earlier income year; and
 (b) in the 1997‑98 income year or a later income year you dispose of the road or building;
Subdivision 41‑A of the Income Tax Assessment Act 1997 (which sets out Common rule 1 dealing with roll‑over relief for related entities) applies as if:
 (c) a reference in that Common rule to the rules for the capital allowance included a reference to that Division (except section 124J); and
 (d)