Commonwealth Numbered Acts

INCOME TAX ASSESSMENT AMENDMENT ACT 1984 No. 14 of 1984 - SECT 22

22. (1) Section 124ZAFA of the Principal Act is amended-

   (a)  by omitting sub-paragraph (1) (d) (iv) and substituting the following
        sub-paragraph:



"(iv) before the end of the financial year in which capital moneys were first
expended (whether by the taxpayer or by another person) in producing, or by
way of contribution to the cost of producing, the film-

                (A)  a production contract was entered into (whether or not by
                     the taxpayer) under which an amount of capital moneys
                     specified in the production contract as the estimated
                     cost of producing the film was to be expended in
                     producing, or by way of contribution to the cost of
                     producing, the film; or

                (B)  a production contract, and an underwriting contract or
                     underwriting contracts, were entered into (whether or not
                     by the taxpayer) under which an amount of capital moneys
                     specified in the production contract as the estimated
                     cost of producing the film was to be expended in
                     producing, or by way of contribution to the cost of
                     producing, the film,";

   (b)  by omitting from sub-section (1) all the words from and including "an
        amount equal to 150%" to the end of the sub-section and substituting
        the following:



"an amount equal to-

   (e)  where the moneys were expended under a contract entered into on or
        before 23 August 1983-150%; or

   (f)  where the moneys were expended under a contract entered into after 23
        August 1983-133%,
of the amount of the moneys expended shall be allowed as a deduction in the
assessment of the taxpayer in respect of income of the year of income in which
the moneys were expended by the taxpayer.";

   (c)  by inserting after sub-section (1) the following sub-sections:



"(1A) Where-

   (a)  a taxpayer has, under a contract entered into after 23 August 1983,
        expended capital moneys (in this sub-section referred to as the
        'relevant moneys') by way of contribution to the cost of producing a
        film;

   (b)  but for this sub-section, an amount equal to 133% of the relevant
        moneys would be allowable as a deduction under sub-section (1) in
        respect of the relevant moneys in an assessment of the taxpayer;

   (c)  the production contract referred to in sub-sub-paragraph (1) (d) (iv)
        (A) or, in a case to which sub-sub-paragraph (1) (d) (iv) (B) applies,
        the underwriting contract or each of the underwriting contracts, as
        the case may be, referred to in that last-mentioned sub-sub-paragraph,
        was entered into on or before 23 August 1983;

   (d)  in a case to which sub-sub-paragraph (1) (d) (iv) (A) applies-under
        the production contract referred to in that sub-sub-paragraph, a
        person conditionally agreed to expend capital moneys by way of
        contribution to the cost of producing the film; and

   (e)  the amount specified in the production contract referred to in
        sub-sub-paragraph (1) (d) (iv) (A) or (B), as the case may be,
        exceeded the amount of the committed capital in relation to the film
        at the time when the taxpayer entered into the contract referred to in
        paragraph (a),
the amount of the deduction allowable under sub-section (1) in respect of the
relevant moneys is an amount equal to-

   (f)  if the amount of the relevant moneys does not exceed the amount of the
        excess referred to in paragraph (e)-150% of the amount of the relevant
        moneys; and

   (g)  in any other case-the sum of-

        (i)    150% of so much of the relevant moneys as is equal to the
               amount of the excess referred to in paragraph (e); and

        (ii)   133% of the remainder of the relevant moneys.



"(1B) For the purposes of sub-section (1A), the amount of the committed
capital in relation to a film at a particular time is the total amount of
capital moneys that, before that time, persons have expended or agreed to
expend in producing, or by way of contribution to the cost of producing, the
film, other than moneys that persons have conditionally agreed to expend by
way of contribution to the cost of producing the film."; and

   (d)  by adding at the end thereof the following sub-sections:



"(5) In this section-
'production contract', in relation to a film, means a contract under which a
person has, or persons have, agreed to expend capital moneys in producing, or
by way of contribution to the cost of producing, the film, but does not
include an underwriting contract;
'underwriting contract', in relation to a film, means a contract-

   (a)  under which a person has, or persons have, conditionally agreed to
        expend capital moneys by way of contribution to the cost of producing
        the film; and

   (b)  under which no person has agreed to expend capital moneys by way of
        contribution to the cost of producing the film otherwise than
        conditionally.



"(6) For the purposes of this section, a person shall be taken to have
conditionally agreed under a contract to expend capital moneys by way of
contribution to the cost of producing a film if, under the contract, the
person has agreed to expend capital moneys by way of contribution to the cost
of producing the film only in the event that the aggregate of the capital
moneys expended, or agreed to be expended, in producing, or by way of
contribution to the cost of producing, the film is less than an amount
specified in, or ascertained in accordance with, the contract.".

(2) The amendment made by paragraph (1) (a) applies to assessments in respect
of income of the year of income in which 13 January 1983 occurred and of all
subsequent years of income.