INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-42 - PERSONAL SERVICES INCOME  

Division 86 - Alienation of personal services income  

Subdivision 86-B - Entitlement to deductions  

SECTION 86-65   Entity maintenance deductions  

86-65(1)  
Section 86-60 does not stop a *personal services entity deducting an amount to the extent that it is an *entity maintenance deduction.

Note:

See section 86-25 for how entity maintenance deductions are offset against a personal services entity's income.

86-65(2)  
Each of these is an entity maintenance deduction :

(a) any fee or charge payable by the entity for opening, operating or closing an account with an *ADI;

(b) any deduction under section 25-5 (about tax-related expenses);

(c) any loss or outgoing incurred in relation to preparation or lodgment of any document the entity is required to lodge under the Corporations Act 2001 ;

(d) any fee or charge payable by the entity to an *Australian government agency for any licence, permission, approval, authorisation, registration or certification (however described) that is granted or given under an *Australian law.

86-65(3)  
However, paragraph (2)(c) does not include any payment that the entity makes to an *associate.