Commonwealth Numbered Acts

INCOME TAX ASSESSMENT AMENDMENT ACT 1984 No. 14 of 1984 - SECT 15

15. Section 82AH of the Principal Act is amended-
(a) by omitting from paragraphs (1) (a) and (2) (a) "property" (first
occurring) and substituting "sub-section 82AA (1) property";

   (b)  by inserting after sub-section (2) the following sub-sections:



"(2A) Where-

   (a)  a deduction has been allowed, or would but for this sub-section be
        allowable, under this Subdivision from the assessable income of a
        taxpayer of a year of income in relation to a sub-section 82AA (2)
        ship acquired or constructed by the taxpayer, not being a ship that,
        in the case of a taxpayer being a leasing company, the taxpayer has
        leased to another person;

   (b)  after the expiration of 12 months after the ship became an eligible
        Australian ship-

        (i)    the taxpayer leased the ship, let the ship on hire under a
               hire-purchase agreement or otherwise granted a right to another
               person to use the ship; or

        (ii)   the ship ceased to be an eligible Australian ship; and

   (c)  the Commissioner is satisfied that, when the ship became an eligible
        Australian ship, the taxpayer intended to lease the ship, let the ship
        on hire under a hire-purchase agreement or otherwise grant a right to
        another person to use the ship or that the ship would cease to be an
        eligible Australian ship, after becoming entitled to a deduction under
        this Subdivision in respect of the ship,
the deduction shall, if the Commissioner so determines, be deemed not to have
been, or not to be, allowable, as the case may be.



"(2B) Where-

   (a)  a deduction has been allowed, or would but for this sub-section be
        allowable, under this Subdivision from the assessable income of a
        taxpayer of a year of income in relation to a sub-section 82AA (2)
        ship acquired or constructed by the taxpayer, not being a ship that,
        in the case of a taxpayer being a leasing company, the taxpayer has
        leased to another person;

   (b)  after the expiration of 12 months after the ship became an eligible
        Australian ship, the taxpayer disposed of a part of his interest in
        the ship; and

   (c)  the Commissioner is satisfied that, when the ship became an eligible
        Australian ship, the taxpayer intended to dispose of the whole or a
        part of his interest in the ship after becoming entitled to a
        deduction under this Subdivision in respect of the ship,
then, if the Commissioner so determines, so much of the deduction as the
Commissioner considers appropriate shall be deemed not to have been, or not to
be, allowable, as the case may be.";

   (c)  by omitting from paragraph (3) (a) "property" and substituting
        "sub-section 82AA (1) property";

   (d)  by inserting after sub-section (3) the following sub-section:



"(3A) Where-

   (a)  a deduction has been allowed, or would but for this sub-section be
        allowable, under this Subdivision from the assessable income of a
        taxpayer being a leasing company of a year of income in relation to a
        sub-section 82AA (2) ship leased by the taxpayer to another person (in
        this sub-section referred to as the 'lessee');

   (b)  after the expiration of 12 months after the ship was first used, or
        installed ready for use, by the lessee, and before the expiration of
        the term of the lease-

        (i)    the lease was terminated;

        (ii)   while the lease was in force the lessee entered into a contract
               or arrangement with another person for the use of the ship by
               that other person; or

        (iii)  the ship ceased to be an eligible Australian ship; and

   (c)  the Commissioner is satisfied that, on the day on which the ship
        became an eligible Australian ship or on the day on which the lessee
        took the ship on lease, whichever is the later, the lessee intended to
        cause the lease to be terminated, to enter into a contract or
        arrangement as mentioned in sub-paragraph (b) (ii) or that the lessee
        or the taxpayer intended that the ship would cease to be an eligible
        Australian ship,
the deduction shall, if the Commissioner so determines, be deemed not to have
been, or not to be, allowable, as the case may be.";

   (e)  by omitting from paragraph (4) (a) "property" and substituting
        "sub-section 82AA (1) property"; and

   (f)  by adding at the end thereof the following sub-section:



"(5) Where-

   (a)  a deduction has been allowed, or would but for this sub-section be
        allowable, under this Subdivision from the assessable income of a
        taxpayer of a year of income in relation to a sub-section 82AA (2)
        ship taken on lease by the taxpayer from a leasing company;

   (b)  after the expiration of 12 months after the ship was first used, or
        installed ready for use, by the taxpayer-

        (i)    the lease was terminated;

        (ii)   while the lease was in force the taxpayer entered into a
               contract or arrangement with another person for the use of the
               ship by that other person; or

        (iii)  the ship ceased to be an eligible Australian ship; and

   (c)  the Commissioner is satisfied that, on the day on which the ship
        became an eligible Australian ship or on the day on which the taxpayer
        took the ship on lease, whichever is the later, the taxpayer intended
        to cause the lease to be terminated, to enter into a contract or
        arrangement as mentioned in sub-paragraph (b) (ii) or that the
        taxpayer or the leasing company intended that the ship would cease to
        be an eligible Australian ship,
the deduction shall, if the Commissioner so determines, be deemed not to have
been, or not to be, allowable, as the case may be.".