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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 26 - Some amounts you cannot deduct, or cannot deduct in full    View history reference

Operative provisions  

SECTION 26-30  Relative's travel expenses  

 View history reference

26-30(1)  

 ITAA 36
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)

26-30(2)  

 ITAA 36
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

26-30(3)  

 ITAA 36
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

26-30(4)  

 View history reference ITAA 36
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

(ii) that the entity pays (or is liable to pay) to that other individual;
were an employee of the entity.

This section also applies to entities who are not employers

26-30(5)  

 View history reference ITAA 36
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.

Withholding payments covered

26-30(6)  

 View history reference
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
ItemProvisionSubject matter
1Section 12-40Payment to company director
...........
2Section 12-45Payment to office holder
...........
3Section 12-50Return to work payment
...........
4Subdivision 12-DBenefit, training and compensation payments


 



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