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INCOME TAX ASSESSMENT ACT 1997 - SECT 40.140 Getting tax information from associates

INCOME TAX ASSESSMENT ACT 1997 - SECT 40.140

Getting tax information from associates

  (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.

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