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

45   After subsection 110-55(9A)

Insert:

(9B) Expenditure does not form part of the reduced cost base to the extent that it is a *bribe to a foreign public official or a *bribe to a public official.

(9C) Expenditure does not form part of the reduced cost base to the extent that it is in respect of providing *entertainment.

(9D) Expenditure does not form part of the reduced 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.