Tax Law Improvement Act 1997 (121 of 1997)

Schedule 8   Recoupment

Part 1   Amendment of the Income Tax (Transitional Provisions) Act 1997

1   Before Subdivision 20-B

Insert:

Table of Subdivisions

20-A Insurance, indemnity or recoupment for deductible expenses

20-B Disposal of a car for which lease payments have been deducted

Subdivision 20-A - Insurance, indemnity or recoupment for deductible expenses

Table of sections

20-1 Application of Subdivision 20-A of the Income Tax Assessment Act 1997

20-5 Continued application of some 1936 Act provisions about recoupment

20-1 Application of Subdivision 20-A of the Income Tax Assessment Act 1997

(1) Subdivision 20-A of the Income Tax Assessment Act 1997 applies to an assessable recoupment received in the 1997-98 income year or a later income year of a loss or outgoing whenever incurred.

(2) That Subdivision also applies to an amount by which you are taken because of paragraph 70A(5)(b) of the Income Tax Assessment Act 1936 to be recouped in the 1997-98 income year.

Note: Paragraph 70A(5)(b) of the Income Tax Assessment Act 1936 carries forward to the next income year a recoupment of mains electricity connection expenditure that is not assessable in the current year.

20-5 Continued application of some 1936 Act provisions about recoupment

The provisions of the Income Tax Assessment Act 1936 listed in the table continue to apply to assessments for the 1997-98 income year and later income years (except in relation to an amount received as recoupment in the 1997-98 income year or a later income year).

Note: The provisions in the table generally treat expenditure as not having been incurred to the extent that it has been recouped.