Income Tax (Trading and Other Income) Act 2005 section 146

Meaning of "relevant telecommunication right"

Section 146 defines the term "relevant telecommunication right" as used in the chapter dealing with the tax treatment of certain telecommunications assets.

• A "relevant telecommunication right" includes a wireless telegraphy licence obtained through a government auction bidding process under the Wireless Telegraphy Act 2006.
• It also includes an indefeasible (i.e. permanent and irrevocable) right to use a telecommunications cable system.
• Any right derived directly or indirectly from such a licence or indefeasible right also qualifies.
• In practice, the auction licence category has so far applied only to the third generation (3G) mobile telephone licences auctioned by the government in April 2000.