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 26-30   Relative ' s travel expenses  

26-30(1)  


You cannot deduct under this Act a loss or outgoing you incur, insofar as it is attributable to your * relative ' s travel, if:


(a) you travelled in the course of performing your duties as an employee, or in the course of carrying on a * business for the purpose of gaining or producing your assessable income; and


(b) your relative accompanied you while you travelled. Exception to subsection (1)

26-30(2)  


Subsection (1) does not stop you deducting a loss or outgoing if:


(a) your * relative, while accompanying you, performed substantial duties as your employer ' s employee, or as your employee; and


(b) it is reasonable to conclude that your relative would still have accompanied you even if he or she had not had a personal relationship with you. Exception when you provide a fringe benefit

26-30(3)  


Subsection (1) does not stop you deducting expenditure you incur in * providing a * fringe benefit. This section also applies to individuals who are not employees

26-30(4)  


If an individual is not an employee, but receives, or is entitled to receive, * withholding payments covered by subsection (6), this section applies to the individual as if:


(a) he or she were an employee; and


(b) the entity, who pays (or is liable to pay) * withholding payments covered by subsection (6) that result in the individual being in receipt of, or entitled to receive, such payments, were the individual ' s employer; and


(c) any other individual who receives (or is entitled to receive) * withholding payments covered by subsection (6):


(i) that result in that other individual being in receipt of, or entitled to receive, such payments; and

(ii) that the entity pays (or is liable to pay) to that other individual;
were an employee of the entity. This section also applies to entities who are not employers

26-30(5)  


If an entity is not an employer, but pays (or is liable to pay) * withholding payments covered by subsection (6), this section applies to the entity as if:


(a) it were an employer; and


(b) an individual to whom the entity pays (or is liable to pay) such withholding payments were the entity ' s employee.

Withholding payments covered

26-30(6)  


This subsection covers:


(a) a * withholding payment covered by any of the provisions in Schedule 1 to the Taxation Administration Act 1953 listed in the table; and


(b) a withholding payment covered by section 12-47 in Schedule 1 to the Taxation Administration Act 1953 where:


(i) the payment is made to a religious practitioner by a religious institution; and

(ii) the activity, or series of activities, for which the payment is made is done by the religious practitioner as a member of the religious institution.


Withholding payments covered
Item Provision Subject matter
1 Section 12-40 Payment to company director
.
2 Section 12-45 Payment to office holder
.
3 Section 12-50 Return to work payment
.
4 Subdivision 12-D Benefit, training and compensation payments


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