A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-2 - Special rules mainly about supplies and acquisitions  

Note:

The special rules in this Part mainly modify the operation of Part 2-2 , but they may affect other Parts of Chapter 2 in minor ways.

Division 69 - Non-deductible expenses  

Subdivision 69-A - Non-deductible expenses generally  

69-5   Non-deductible expenses do not give rise to creditable acquisitions or creditable importations  

(1)    
An acquisition is not a * creditable acquisition to the extent that it is a * non-deductible expense .

(2)    
An importation is not a * creditable importation to the extent that it is a * non-deductible expense .

(3)    
An acquisition or importation is a non-deductible expense if it is not deductible under Division 8 of the * ITAA 1997 because of one of the following:

(a) section 26-5 of the * ITAA 1997 (Penalties);

(b) section 26-30 of the * ITAA 1997 (Relative's travel expenses);

(c) section 26-40 of the * ITAA 1997 (Maintaining your family);

(d) section 26-45 of the * ITAA 1997 (Recreational club expenses);

(e) section 26-50 of the * ITAA 1997 (Expenses for a leisure facility);

(f) Division 32 of the * ITAA 1997 (Entertainment expenses);

(g) Division 34 of the * ITAA 1997 (Non-compulsory uniforms);

(h) section 51AK of the * ITAA 1936 (Agreements for the provision of non-deductible non-cash business benefits).

(i) (Repealed by No 41 of 2005)

(3A)    

An acquisition or importation is also a non-deductible expense to the extent that it is not deductible under Division 8 of the * ITAA 1997 because of one of the following:

(a) section 51AEA of the * ITAA 1936 (Meal entertainment - election to use the 50/50 split method);

(b) section 51AEB of the ITAA 1936 (Meal entertainment - election to use the 12 week register method);

(c) section 51AEC of the ITAA 1936 (Entertainment facility - election to use the 50/50 split method).

(4)    

If the entity making the acquisition or importation is an * exempt entity , the acquisition or importation is a non-deductible expense if it would have been a non-deductible expense under subsection (3) or (3A) had the entity not been an exempt entity.

(5)    
This section has effect despite sections 11-5 and 15-5 (which are about what is a creditable acquisition and what is a creditable importation).