Taxation Laws Amendment Act 1994 (56 of 1994)

Part 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 2   Tax-exempt infrastructure borrowings

16   Direct infrastructure borrowing-requirement relating to spending of borrowed money

Section 159GZZZZA of the Principal Act is amended:

(a) by adding at the end of subsection (1) the following word and paragraph:
            

"; or (c) subject to subsection (2A), the payment of interest, or of amounts in the nature of interest, on a direct infrastructure borrowing.";

(b) by inserting after subsection (2) the following subsection:
            

"(2A) Spending money on the payment of interest, or of amounts in the nature of interest, only qualifies under subsection (1):

(a) to the extent that the interest or those amounts relate to that part of the period of the borrowing that occurs during the period (the 'construction period') in which any of the facilities referred to in paragraph (1)(a), or any of the facilities referred to in paragraph (1)(b) that are being constructed, are under construction; and

(b) if the payment is made during the construction period.".