INCOME TAX ASSESSMENT ACT 1997 - SECT 250.60 Tax preferred use of an asset
INCOME TAX ASSESSMENT ACT 1997 - SECT 250.60
Tax preferred use of an asset(1) An asset is put to a tax preferred use at a particular time if:
(a) an * end user (or a * connected entity) holds, at that time, rights as lessee under a lease of the asset; and
(b) either or both of the following subparagraphs is satisfied at that time:
(i) the asset is, or is to be, used by or on behalf of an end user who is a * tax preferred end user because of paragraph 250 - 55(a) (tax preferred entity);
(ii) the asset is, or is to be, used wholly or principally outside Australia and an end user of the asset is a tax preferred end user because of paragraph 250 - 55(b) (foreign resident or business).
If this subsection applies, the tax preferred use of the asset is the lease referred to in paragraph (a).
Note: For particular arrangements that are treated as leases, see section 250 - 80.
(2) An asset is also put to a tax preferred use at a particular time if:
(a) at that time the asset is, or is to be, used (whether or not by you) wholly or partly in connection with:
(i) the production, supply, carriage, transmission or delivery of goods; or
(ii) the provision of services or facilities; and
(b) either or both of the following subparagraphs is satisfied at that time:
(i) some or all of the goods, services or facilities are, or are to be, produced for or supplied, carried, transmitted or delivered to or for an * end user who is a * tax preferred end user because of paragraph 250 - 55(a) (tax preferred entity) but is not an * exempt foreign government agency;
(ii) the asset is, or is to be, used wholly or principally outside Australia and an end user of the asset is a tax preferred end user because of paragraph 250 - 55(b) (foreign resident or business).
If this subsection applies, the tax preferred use of the asset is the production, supply, carriage, transmission, delivery or provision referred to in paragraph (a).
(3) To avoid doubt, the facilities referred to in subsection (2) include:
(a) hospital or medical facilities; or
(c) educational facilities; or
(f) the supply of water, gas or electricity; or
(g) housing or accommodation; or
(h) premises from which to operate a * business or other undertaking.
(4) If the asset is being * put to a tax preferred use:
(a) the members of the tax preferred end user group are:
(i) the * tax preferred end user; and
(ii) the * connected entities of the tax preferred end user; and
(b) the members of the tax preferred sector are:
(i) the tax preferred end user (and connected entities); and
(ii) any * tax preferred entity (or a connected entity); and
(iii) any entity that is a foreign resident.