Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If you acquire a * depreciating asset from an * associate of yours where the associate has deducted or can deduct an amount for the asset under this Division, you may give the associate a written notice requiring the associate to tell you:
(a) the method the associate was using to work out the decline in value of the asset; and
(b) the * effective life the associate was using; and
(c) if section 40-102 applied to the asset at any time:
(i) the effective life that the associate would have used if section 40-102 had not applied to the asset; and
(ii) the relevant time that applied to the associate under subsection 40-102(3).
(2) The notice must:
(a) be given within 60 days of your acquiring the asset; and
(b) specify a period of at least 60 days within which the information must be given; and
(c) set out the effect of subsection (3).
Note: Subsections (4) and (5) explain how this subsection operates if the associate is a partnership.
Requirement to comply with notice
(3) The * associate must not intentionally refuse or fail to comply with the notice.
Penalty: 10 penalty units.
Giving the notice to a partnership
(4) If the * associate is a partnership:
(a) you may give it to the partnership by giving it to any of the partners (this does not limit how else you can give it); and
(b) the obligation to comply with the notice is imposed on each of the partners (not on the partnership), but may be discharged by any of them.
(5) A partner must not intentionally refuse or fail to comply with that obligation, unless another partner has already complied with it.
Penalty: 10 penalty units.
Limits on giving a notice
(6) Only one notice can be given in relation to the same * depreciating asset.
Guide to Subdivision 40-C