Commonwealth Numbered Acts

INCOME TAX ASSESSMENT AMENDMENT ACT 1984 No. 14 of 1984 - SECT 29

29. (1) Where-

   (a)  a pre-July 1982 ship or a post-July 1982 ship-

        (i)    was acquired new or constructed by a person (in this
               sub-section
referred to as the "lessor");

        (ii)   has, since its commissioning date, been owned by the lessor;

        (iii)  is leased to another person (in this sub-section referred to as
the "lessee") and has not, since its commissioning date, been leased to any
other person;

        (iv)   in the case of a pre-July 1982 ship, the ship-

                (A)  was, on 29 July 1982, registered under the Shipping
                     Registration Act 1981 and that registration has, at all
                     times since that date, remained in force; and

                (B)  has not, at any time since that date, been registered in
                     a country other than Australia; and

        (v)    in the case of a post-July 1982 ship, the ship-

                (A)  was, on its commissioning date, registered under the
                     Shipping Registration Act 1981 and that registration has,
                     at all times since the ship became so registered,
                     remained in force; and

                (B)  has not, at any time since the commissioning date of the
                     ship, been registered in a country other than Australia;

   (b)  one of the following conditions is applicable at the commencement of
        this section:

        (i)    the lessor is a non-resident;

        (ii)   the lessor is not a leasing company;

        (iii)  the lessor is a leasing company and the agreement under which
               the lessee holds the ship on lease is for a period of less than
               4 years; and

   (c)  before the expiration of 6 months after the commencement of this
        section or such further period as the Commissioner allows-

        (i)    the lessee enters into an agreement with the lessor for the
               acquisition of the ship by the lessee; or

        (ii)   in a case where the condition referred to in sub-paragraph (b)
               (iii) is applicable-the lessee enters into an agreement with
               the lessor to take the ship on lease for a further period
               commencing on the expiration of the period referred to in that
               sub-paragraph and ending not earlier than 4 years after the
               commencement of the period referred to in that sub-paragraph,
               then-

   (d)  if the lessee enters into an agreement for the acquisition of the ship
        by the lessee-for the purposes of section 57AM of the Income Tax
        Assessment Act 1936, the ship shall be taken to have been acquired new
        by the lessee and the commissioning date of the ship shall be taken to
        be the date on which the lessee acquires the ship pursuant to that
        agreement, but a deduction pursuant to sub-section 57AM (11) of that
        Act is not allowable in respect of the ship; and

   (e)  if the ship was acquired new by the lessor under a contract entered
        into on or after 1 January 1976 or was constructed by the lessor and
        the construction commenced on or after that date and if a deduction
        under Subdivision B of Division 3 of Part III of the
        Income Tax Assessment Act 1936 has not been allowed and is not
        allowable to the lessor in respect of the ship for the reason that, or
        for reasons that include the reason that, the ship was for use outside
        Australia, then, for the purposes of determining the application of
        that Subdivision to the ship by virtue of sub-section 82AA (2) of that
        Act-

        (i)    in a case where the lessee enters into an agreement for the
               acquisition of the ship by the lessee-the ship shall be taken
               to have been acquired new by the lessee under that agreement;
               and

        (ii)   in a case where the lessee enters into an agreement to take the
               ship on lease for a further period-the lessee shall be taken to
               have agreed to take the ship on lease under the original
               agreement for a period of not less than 4 years.

(2) For the purposes of sub-section (1), where-
(a) a person (in this sub-section referred to as the "lessor") leases to
another person (in this sub-section referred to as the "lessee") a trading
ship acquired by the lessor from the lessee;

   (b)  the commissioning date of the ship occurred on or after 29 July 1977;

   (c)  the ship was constructed by, or acquired new by, the lessee and had,
        since its commissioning date and prior to its being acquired by the
        lessor, been owned by the lessee;

   (d)  the period between the commissioning date of the ship and date on
        which it was acquired by the lessor did not exceed 6 months;

   (e)  the Commissioner is satisfied that the acquisition or construction of
        the ship by the lessee, the acquisition of the ship by the lessor from
        the lessee and the leasing of the ship by the lessor to the lessee
        occurred in pursuance of a contract or arrangement entered into at
        arm's length;

   (f)  in the case of a pre-July 1982 ship, the ship-

        (i)    was, on 29 July 1982, registered under the Shipping
               Registration Act 1981 and that registration has, at all times
               since that date, remained in force; and

        (ii)   has not, at any time since that date, been registered in a
               country other than Australia; and

   (g)  in the case of a post-July 1982 ship, the ship-

        (i)    was, on its commissioning date, registered under the Shipping
               Registration Act 1981 and that registration has, at all times
               since the ship became so registered, remained in force; and

        (ii)   has not, at any time since the commissioning date of the ship,
               been registered in a country other than Australia, the ship
               shall be taken to have been acquired new by the lessor and the
               commissioning date of the ship shall be taken to be the date on
               which the lessor acquired the ship from the lessee but
               paragraph (1) (e) does not apply in relation to the ship unless
               the ship was acquired by the lessee under a contract entered
               into on or after 1 January 1976 or was constructed by the
               lessee and the construction commenced on or after that date.

(3) In this section-

"commissioning date", "lease", "post-July 1982 ship", "pre-July 1982 ship"
and "trading ship" have the same respective meanings as in section 57AM of the
Income Tax Assessment Act 1936;

"leasing company" has the same meaning as in Subdivision B of Division 3 of
Part III of the Income Tax Assessment Act 1936.