Income Tax Assessment Act 1936
SCHEDULE 2D
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TAX EXEMPT ENTITIES THAT BECOME TAXABLE
Division 57
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Tax exempt entities that become taxable
If, apart from this section, an amount would be an allowable deduction under a modified deduction rule for the transition year in respect of expenditure incurred before the transition time (whether or not during the transition year), only so much of the amount as is worked out using the following formula is so allowable:
(a) if the expenditure was incurred before the transition year - the number of days in the transition year; or
(b) otherwise - the number of days in the period from the beginning of the day on which the expenditure is incurred until the end of the transition year. 57-95(2)
This section does not apply to an amount to which paragraph 57-110(1)(b) (which deals with balancing adjustments) applies.
Subdivision 57-J
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Capital allowances and certain other deductions
SECTION 57-95
AMOUNT OF DEDUCTION NOT ALLOWABLE FOR TRANSITION YEAR
57-95(1)
If, apart from this section, an amount would be an allowable deduction under a modified deduction rule for the transition year in respect of expenditure incurred before the transition time (whether or not during the transition year), only so much of the amount as is worked out using the following formula is so allowable:
Number of whole days in transition year after transition time | |
× | Amount of deduction |
Post-expenditure part |
where:
post-expenditure part means:
(a) if the expenditure was incurred before the transition year - the number of days in the transition year; or
(b) otherwise - the number of days in the period from the beginning of the day on which the expenditure is incurred until the end of the transition year. 57-95(2)
This section does not apply to an amount to which paragraph 57-110(1)(b) (which deals with balancing adjustments) applies.
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