INCOME TAX ASSESSMENT ACT 1936

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision H - Period of deductibility of certain advance expenditure  

SECTION 82KZMA   APPLICATION OF SECTION 82KZMD  

82KZMA(1)   Overview.  

Section 82KZMD sets the amount and timing of deductions for expenditure that a taxpayer incurs in a year of income (the expenditure year ), if:


(a) apart from that section, the taxpayer could deduct the expenditure for the expenditure year under:


(i) section 8-1 ; or

(ii) section 355-205 (R & D expenditure) or 355-480 (earlier year associate R & D expenditure);
of the Income Tax Assessment Act 1997 ; and


(b) the requirements in subsections (2), (3), (4) and (5) are met.

82KZMA(2)   Requirements for taxpayer.  

The taxpayer:


(a) must:


(i) carry on a business; or

(ii) be a taxpayer that is not an individual and that does not carry on a business; and


(b) if the taxpayer is a small business entity for the expenditure year - must, before lodging its return of income for that year or within such further time as the Commissioner allows, choose to apply section 82KZMD to the expenditure.

82KZMA(3)   [ Expenditure]  

The expenditure must be:


(a) either:


(i) incurred in carrying on a business; or

(ii) incurred otherwise than in carrying on a business by a taxpayer that is not an individual; and


(b) incurred under an agreement (see subsection 82KZL(1) ); and


(c) incurred in return for the doing of a thing under the agreement that is not to be wholly done within the expenditure year.

82KZMA(4)   Requirement for expenditure not to be excluded expenditure.  

The expenditure must not be excluded expenditure (see subsection 82KZL(1) ).

82KZMA(5)   Requirement for expenditure not to meet pre-RBT obligation.  

The expenditure must not meet a pre-RBT obligation (see subsection 82KZL(1) ).

82KZMA(6)   Relationship with other provisions.  

Section 82KZMD has effect:


(a) despite section 8-1 of the Income Tax Assessment Act 1997 ; and


(b) subject to Division 245 of that Act.


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.