Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 43 - Deductions for capital works  

Subdivision 43-A - Key operative provisions  

Operative provisions

SECTION 43-55   Anti-avoidance - arrangement etc. with tax-exempt entity  

43-55(1)    
You will not be allowed a deduction under this Division for an income year if the Commissioner is satisfied that:

(a) you entered into an ^* arrangement with:

(i) an entity to which section 50-5 , 50-10 , 50-15 , 50-25 , 50-30 , 50-40 or 50-45 (dealing with ^* exempt income) applies; or

(ii) an STB (within the meaning of Division 1AB of Part III of the Income Tax Assessment Act 1936 ) whose ^* ordinary income and ^* statutory income is exempt from income tax;

under which you were to pay an amount, or transfer property, directly or indirectly, to the entity; and

(b) the amount of the payment or the value of the property is calculated by reference to the amount of a deduction allowable to you under this Division; and

(c) a purpose of the arrangement that is not a merely incidental purpose is to ensure that the benefit of the deduction would pass wholly or substantially to the entity, whether directly or indirectly.

43-55(2)    
Subsection (1) applies to ^* arrangements entered into with an entity referred to in subparagraph (1)(a)(i) after 1 May 1980 that relate to deductions for ^* hotel buildings or ^* apartment buildings begun before 1 July 1997.

43-55(3)    
Subsection (1) also applies to ^* arrangements entered into with an entity referred to in subparagraph (1)(a)(ii) after 30 June 1994 that relate to deductions for ^* hotel buildings or ^* apartment buildings begun before 1 July 1997.