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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  

 ITAA 36

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
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(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.

 



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