Income Tax Assessment Act 1997
CHAPTER 2
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LIABILITY RULES OF GENERAL APPLICATION
PART 2-5
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RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS
Division 27
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Effect of input tax credits etc. on deductions
Subdivision 27-B
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Effect of input tax credits etc. on capital allowances
SECTION 27-105
Other Division 40 expenditure
27-105(1)
This section applies to expenditure for which an entity can deduct amounts under Division 40 (but not under Subdivision 40-B or 40-E , or Subdivision 40-I to the extent that that Subdivision relates to project pools).
27-105(2)
The amount of the expenditure is reduced if the entity is or becomes entitled to an * input tax credit for a * creditable acquisition or * creditable importation to which the expenditure directly or indirectly relates. The reduction is the amount of the input tax credit that relates to that expenditure.
27-105(3)
If the entity has a * decreasing adjustment in an income year that relates directly or indirectly to the expenditure, an amount equal to the decreasing adjustment is included in the entity ' s assessable income for that income year.
27-105(4)
If the entity has an * increasing adjustment in an income year that relates directly or indirectly to the expenditure, the entity can deduct an amount equal to the increasing adjustment for that income year.
27-105(5)
If the entity is a partnership and partners in that partnership can deduct amounts under Division 40 because section 40-570 or 40-665 applies, an amount equal to the * input tax credit, the * decreasing adjustment or the * increasing adjustment is apportioned to each of the partners as set out in subsection 40-570(2) or 40-665(2) .
27-105(6)
However, this section does not apply to an * exempt entity.
View history note
Hide history noteThis section applies to expenditure for which an entity can deduct amounts under Division 40 (but not under Subdivision 40-B or 40-E , or Subdivision 40-I to the extent that that Subdivision relates to project pools).
27-105(2)
The amount of the expenditure is reduced if the entity is or becomes entitled to an * input tax credit for a * creditable acquisition or * creditable importation to which the expenditure directly or indirectly relates. The reduction is the amount of the input tax credit that relates to that expenditure.
27-105(3)
If the entity has a * decreasing adjustment in an income year that relates directly or indirectly to the expenditure, an amount equal to the decreasing adjustment is included in the entity ' s assessable income for that income year.
27-105(4)
If the entity has an * increasing adjustment in an income year that relates directly or indirectly to the expenditure, the entity can deduct an amount equal to the increasing adjustment for that income year.
27-105(5)
If the entity is a partnership and partners in that partnership can deduct amounts under Division 40 because section 40-570 or 40-665 applies, an amount equal to the * input tax credit, the * decreasing adjustment or the * increasing adjustment is apportioned to each of the partners as set out in subsection 40-570(2) or 40-665(2) .
27-105(6)
However, this section does not apply to an * exempt entity.