Tax Laws Amendment (2006 Measures No. 1) Act 2006 (32 of 2006)

Schedule 2   Business related costs

Part 2   CGT amendments

Income Tax Assessment Act 1997

44   At the end of section 110-38

Add:

(2) Expenditure does not form part of any element of the cost base to the extent that it is a *bribe to a foreign public official or a *bribe to a public official.

(3) Expenditure does not form part of any element of the cost base to the extent that it is in respect of providing *entertainment.

(4) Expenditure does not form part of any element of the cost base to the extent that section 26-5 prevents it being deducted (even if some other provision also prevents it being deducted).

Note: Section 26-5 denies deductions for penalties.