Income Tax Assessment Act 1997
An * Australian entity can deduct an amount of loss or outgoing from its assessable income for an income year if:
(a) the amount is incurred by the entity in deriving income from a foreign source; and
(b) the income is *non-assessable non-exempt income under section 768-5 , or section 23AI or 23AK of the Income Tax Assessment Act 1936 ; and
(c) the amount is a cost in relation to a * debt interest issued by the entity that is covered by paragraph (1)(a) of the definition of debt deduction .
This section does not apply to a Division 230 financial arrangement.