Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances  

Subdivision 40-H - Capital expenditure that is immediately deductible  

Operative provisions

SECTION 40-750   Deduction for payments of petroleum resource rent tax  

40-750(1)  
You can deduct a payment of * petroleum resource rent tax, or an * instalment of petroleum resource rent tax, that you make in an income year.

Note 1:

If an amount of the expenditure is recouped, the amount may be included in your assessable income: see Subdivision 20-A .

Note 2:

If Division 250 applies to you and an asset:

  • (a) if section 250-150 applies - you cannot deduct expenditure you incur in relation to the asset to the extent specified under subsection 250-150(3) ; or
  • (b) otherwise - you cannot deduct such expenditure.
  • 40-750(2)  
    You cannot deduct under subsection (1) a payment that you make under paragraph 99(c) of the Petroleum Resource Rent Tax Assessment Act 1987 .

    40-750(3)  
    These amounts are included in your assessable income for the income year in which they are refunded, credited, paid or applied:


    (a) an amount the Commissioner pays you in total or partial discharge of a debt of the kind referred to in subsection 47(1) of the Petroleum Resource Rent Tax Assessment Act 1987 ; or


    (b) an amount the Commissioner applies under subsection 47(2) of the Petroleum Resource Rent Tax Assessment Act 1987 in total or partial discharge of a liability you have.


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