INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

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

Division 25 - Some amounts you can deduct  

Operative provisions  

SECTION 25-90   25-90   Deduction relating to foreign non-assessable non-exempt income  


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 .

Note:

This section does not apply to a Division 230 financial arrangement.


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