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.