Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 26 - Some amounts you cannot deduct, or cannot deduct in full  

Operative provisions  

SECTION 26-25A   Payments to employees - labour mobility programs  

No deduction to extent amount not withheld

26-25A(1)    

You cannot deduct under this Act salary, wages, commission, bonuses or allowances from which Subdivision 12-FC in Schedule 1 to the Taxation Administration Act 1953 (about labour mobility programs) requires you to withhold an amount, to the extent that:

(a)    you fail to withhold the amount; or

(b)    after withholding the amount, you fail to comply with section 16-70 in that Schedule in relation to that amount.

Note:

Section 16-70 in that Schedule requires you to pay the amount to the Commissioner.

Deduction to extent amount not withheld but withholding tax paid

26-25A(2)    
You can deduct, for an income year, salary, wages, commission, bonuses or allowances to the extent that:

(a)    you cannot deduct the salary, wages, commission, bonuses or allowances for that income year only because of subsection (1) of this section; and

(b)    

the *labour mobility program withholding tax payable for the salary, wages, commission, bonuses or allowance is paid.