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HR 5: Airport operators: general
or “Tax treatment of joint venture airport operators”
You could also call this:

“Rules for airport operators' ownership and valuation of assets”

If you run an airport, this law treats you as the owner of all your airport assets. You’re considered to have acquired an asset when you got it, agreed to use it, or started having the power to use it. The law says you paid the market value for the asset when you got it.

If something stops being an airport asset but you didn’t sell it, the law acts as if you sold it for its market value at that time.

If there are questions about an asset’s market value, cost, or when you got it, you need to agree with the tax office (called the Commissioner) on the answer. If you can’t agree, the Commissioner gets to decide.

Airport assets include things you get, agree to use, or have the power to use for your airport activities. They also include assets for special funds to pay for depreciation or to pay back loans. Assets you buy with money from your airport activities are also counted.

Some things don’t count as airport assets. These are things you’ve gotten rid of, stopped agreeing to use, or no longer have the power to use. Also, things you’re leasing usually don’t count, unless it’s a special type of lease.

If you’re not sure about something in this law, you should ask for help to understand it better.

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Next up: HR 7: Meaning of airport operator’s activities

or “What counts as an airport operator's work under tax law”
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Part H Taxation of certain entities
Other entities

HR 6Airport operator’s assets

  1. An airport operator is treated as owning each of its airport assets.

  2. An airport operator is treated as having acquired an asset at the time—

  3. it acquired it other than by way of purchase:
    1. it agreed to use it:
      1. it started to have the power to use it.

        1. An airport operator is treated as having incurred, in acquiring an asset, its market value at the time of acquisition.

        2. If an asset ceases to be an airport asset of the airport operator, other than on sale, the airport operator is treated as having sold it, at the time, for a price equal to its market value at the time.

        3. Subsection (6) applies if a question arises concerning—

        4. the market value of an asset:
          1. the cost of an airport asset:
            1. the time at which an airport operator acquired, agreed to use, or started to have the power to use an asset.

              1. The question must be resolved by agreement between the airport operator and the Commissioner or, failing agreement, by the Commissioner.

              2. In this section, for an airport operator, airport asset means—

              3. an asset that, under the joint venture agreement and for the purposes of the airport operator’s activities, the airport authority—
                1. acquires:
                  1. agrees to use:
                    1. is given the power to use:
                    2. an asset owned by a person for the purposes of a depreciation sinking fund for an airport asset:
                      1. an asset owned by a person for the purposes of a loan redemption sinking fund for a loan on which the interest payments are a charge against the joint venture income of the airport operator:
                        1. an asset acquired by the airport operator using funds that are, or by exchanging property that is, acquired in carrying on the airport operator’s activities and not allocated or distributed to the joint venturers.

                          1. Subsection (7)(a) does not apply to an asset that—

                          2. the airport operator has—
                            1. disposed of:
                              1. ceased to agree to use:
                                1. ceased to have the power to use:
                                2. the airport operator has acquired, agreed to use or acquired the power to use under a lease, unless the lease is a specified lease or a finance lease.

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