Tax Laws Amendment (Loss Recoupment Rules and Other Measures) Act 2005 (147 of 2005)
Schedule 3 Denying deductions for illegal activity
Income Tax Assessment Act 1997
4 After subsection 110-55(9)
(9A) Expenditure does not form part of the reduced cost base to the extent that section 26-54 prevents it being deducted (even if some other provision also prevents it being deducted).
Note: Section 26-54 prevents deductions for expenditure related to certain offences.