Capital contributions to amortisable primary sector expenditure

Clauses 18, and 57(7)

The bill contains a proposal that the rules concerning third-party contributions to capital expenditure should be extended to cover primary sector amortisable expenditure of the sort dealt with in subpart DO.

Submission

(Ernst & Young)

It is arguable that the definition of “capital contribution property” and the use of that definition in clause 18 could restrict the application of the proposed capital contribution rule to revenue account property.

Comment

Officials believe that the drafting as it is presently stated is clear and unambiguous.

Recommendation

That the submission be declined.

Submission

(Ernst & Young)

That the definition of “capital account property” be further clarified by referencing it to “capital contribution”.

Comment

Officials suggest that this could make the definition circular and therefore it would not add anything.

Recommendation

That the submission be declined