Commonwealth Numbered Acts

INCOME TAX ASSESSMENT AMENDMENT ACT 1984 No. 14 of 1984 - SECT 18

18. Section 82AJ of the Principal Act is amended-

   (a)  by omitting paragraph (1) (c) and substituting the following
        paragraph:



"(c) before the expiration of 12 months after-

        (i)    in a case where the property is sub-section 82AA (1)
               property-the property was first used or installed ready for use
               by the partnership; or

        (ii)   in a case where the property is a sub-section 82AA (2) ship-the
               ship became an eligible Australian ship,
the taxpayer disposed of the whole or a part of his interest in the
partnership or in the property,";

   (b)  by omitting paragraphs (2) (c) and (d) and substituting the following
        paragraphs:



"(c) after the expiration of 12 months after-

        (i)    in a case where the property is sub-section 82AA (1)
               property-the property was first used or installed ready for use
               by the partnership; or

        (ii)   in a case where the property is a sub-section 82AA (2) ship-the
               day on which the ship became an eligible Australian ship,
the taxpayer disposed of the whole or a part of his interest in the
partnership or in the property; and

   (d)  the Commissioner is satisfied that-

        (i)    in a case where the property is sub-section 82AA (1)
               property-at the time the property was acquired or constructed
               by the partnership; or

        (ii)   in a case where the property is a sub-section 82AA (2) ship-on
               the day on which the ship became an eligible Australian ship,
the taxpayer intended to dispose of the whole or a part of his interest in the
partnership or in the property after the partnership became entitled to a
deduction under this Subdivision,";

   (c)  by omitting from paragraph (5) (a) "property" (first occurring) and
        substituting "sub-section 82AA (1) property";

   (d)  by inserting after sub-section (5) the following sub-section:



"(5A) 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 in relation to a sub-section 82AA (2)
        ship acquired or constructed by a partnership in which the taxpayer is
        a partner, being a ship that is leased by the partnership to another
        person (in this sub-section referred to as the 'lessee'); and

   (b)  before the expiration of 12 months after the ship was first used, or
        installed ready for use, by the lessee, the taxpayer disposed of the
        whole or a part of his interest in the partnership otherwise than to
        the lessee or the whole or a part of his interest in the ship,
then-

   (c)  where the taxpayer disposed of the whole of his interest in the
        partnership or in the ship-the deduction shall be deemed not to have
        been, or not to be, allowable, as the case may be; or

   (d)  in any other case-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.";

   (e)  by omitting from paragraph (6) (a) "property" (first occurring) and
        substituting "sub-section 82AA (1) property";

   (f)  by inserting after sub-section (6) the following sub-section:



"(6A) 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 in relation to a sub-section 82AA (2)
        ship acquired or constructed by a partnership in which the taxpayer is
        a partner, being a ship that is leased by the partnership 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, the taxpayer disposed of the
        whole or a part of his interest in the partnership otherwise than to
        the lessee or the whole or a part of his interest in the 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 taxpayer intended
        to dispose of the whole or a part of his interest in the partnership
        or in the ship after becoming entitled to a deduction under this
        Subdivision in relation to the ship,
then, if the Commissioner so determines-

   (d)  where the taxpayer disposed of the whole of his interest in the
        partnership or in 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; or

   (e)  in any other case-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.";

   (g)  by omitting from sub-section (7) "property" (first occurring) and
        substituting "sub-section 82AA (1) property";

   (h)  by inserting after sub-section (7) the following sub-section:



"(7AA) This Subdivision does not apply, and shall be deemed never to have
applied, in relation to a sub-section 82AA (2) ship leased by a partnership to
another person (in this sub-section referred to as the 'lessee') if, before
the expiration of 12 months after the ship was first used, or installed ready
for use, by the lessee-

   (a)  the lease was terminated;

   (b)  the ship was used by a person other than the lessee pursuant to a
        contract or arrangement entered into at any time between the lessee
        and that person; or

   (c)  the ship ceased to be an eligible Australian ship.";

   (j)  by omitting from sub-section (7A) "property" (first occurring) and
        substituting "sub-section 82AA (1) property";

   (k)  by omitting from paragraph (8) (a) "property" (first occurring) and
        substituting "sub-section 82AA (1) property"; and

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



"(9) 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 in relation to a sub-section 82AA (2)
        ship acquired or constructed by a partnership in which the taxpayer is
        a partner, being a ship that is leased by the partnership 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
               the 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.".