Taxation Determination
TD 93/32
Income tax: property development: are tender costs incurred by an unsuccessful tenderer deductible under subsection 51(1) of the Income Tax Assessment Act 1936?
-
Please note that the PDF version is the authorised version of this ruling.
FOI status:
may be releasedFOI number: I 1214275| This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20). |
1. Yes. Tender costs are deductible under subsection 51(1) if an unsuccessful tenderer is in business, where tender costs are incidental and relevant to that business (per Ronpibon Tin v FCT (1949) 78 CLR 47 and Charles Moore & Co. (W.A.) Pty Ltd v FCT (1956) 11 ATD 147).
Commissioner of Taxation
04/03/93
Previously issued as Draft TD 92/D107
References
ATO references:
NO PD/15B
Related Rulings/Determinations:
TD 92/125
TD 92/131
IT 2450
Subject References:
deductibility of tender costs
property development contracts
Legislative References:
ITAA 51(1)
Case References:
Ronpibon Tin v FCT
(1949) 78 CLR 47
Charles Moore & Co. (W.A.) Pty Ltd v FCT
(1956) 11 ATD 147