This section applies to expenditure for which an entity can deduct amounts under Division
(but not under Subdivision
, or Subdivision
to the extent that that Subdivision relates to project pools).
The amount of the expenditure is reduced if the entity is or becomes entitled to an
input tax credit for a
creditable acquisition or
creditable importation to which the expenditure directly or indirectly relates. The reduction is the amount of the input tax credit that relates to that expenditure.
If the entity has a
decreasing adjustment in an income year that relates directly or indirectly to the expenditure, an amount equal to the decreasing adjustment is included in the entity
s assessable income for that income year.
If the entity has an
increasing adjustment in an income year that relates directly or indirectly to the expenditure, the entity can deduct an amount equal to the increasing adjustment for that income year.
If the entity is a partnership and partners in that partnership can deduct amounts under Division
applies, an amount equal to the
input tax credit, the
decreasing adjustment or the
increasing adjustment is apportioned to each of the partners as set out in subsection