INCOME TAX ASSESSMENT ACT 1997
|CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION
|PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS
Div 26 heading substituted by No 121 of 1997.
You cannot deduct under this Act a loss or outgoing you incur, insofar as it is attributable to your *relative's travel, if:
(a) you travelled in the course of performing your duties as an employee, or in the course of carrying on a *business for the purpose of gaining or producing your assessable income; and
(b) your relative accompanied you while you travelled.
Exception to subsection (1)
Subsection (1) does not stop you deducting a loss or outgoing if:
(a) your *relative, while accompanying you, performed substantial duties as your employer's employee, or as your employee; and
(b) it is reasonable to conclude that your relative would still have accompanied you even if he or she had not had a personal relationship with you.
Exception when you provide a fringe benefit
Subsection (1) does not stop you deducting expenditure you incur in *providing a *fringe benefit.
This section also applies to individuals who are not employees
If an individual is not an employee, but receives, or is entitled to receive, *withholding payments covered by subsection (6), this section applies to the individual as if:
(a) he or she were an employee; and
(b) the entity, who pays (or is liable to pay) *withholding payments covered by subsection (6) that result in the individual being in receipt of, or entitled to receive, such payments, were the individual's employer; and
(c) any other individual who receives (or is entitled to receive) *withholding payments covered by subsection (6):
(i) that result in that other individual being in receipt of, or entitled to receive, such payments; and
were an employee of the entity.
(ii) that the entity pays (or is liable to pay) to that other individual;
S 26-30(4) substituted by No 179 of 1999.
This section also applies to entities who are not employers
If an entity is not an employer, but pays (or is liable to pay) *withholding payments covered by subsection (6), this section applies to the entity as if:
(a) it were an employer; and
(b) an individual to whom the entity pays (or is liable to pay) such withholding payments were the entity's employee.
S 26-30(5) substituted by No 179 of 1999.
Withholding payments covered
This subsection covers:
(a) a *withholding payment covered by any of the provisions in Schedule 1 to the Taxation Administration Act 1953 listed in the table; and
(b) a withholding payment covered by section 12-47 in Schedule 1 to the Taxation Administration Act 1953 where:
(i) the payment is made to a religious practitioner by a religious institution; and
(ii) the activity, or series of activities, for which the payment is made is done by the religious practitioner as a member of the religious institution.
|Withholding payments covered|
|1||Section 12-40||Payment to company director|
|2||Section 12-45||Payment to office holder|
|3||Section 12-50||Return to work payment|
|4||Subdivision 12-D||Benefit, training and compensation payments|
S 26-30(6) substituted by No 168 of 2001 and inserted by No 179 of 1999.
S 26-30 inserted by No 121 of 1997.