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Edited version of your written advice
Authorisation Number: 1051314562925
Date of advice: 12 December 2017
Ruling
Subject: Non-cash business benefit
In order to protect the privacy and commercial in-confidence components of this private binding ruling the following summary is provided.
The taxpayer sought a ruling in regards to section 21A of the Income Tax Assessment Act 1936 (ITAA 1936). The Commissioner ruled that the asset acquired by the taxpayer constituted a ‘non-cash business benefit’ under section 21A of the ITAA 1936 as it was income derived by the taxpayer and that the benefit shall be brought into account at its arms-length value reduced by the recipient’s contribution.
Relevant legislative provisions
Section 21A of the ITAA 1936
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