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Draft Taxation Determination

TD 93/D183

Income tax: are Wheat Industry Fund levies paid by wheat growers under the Wheat Marketing Act 1989 deductible under subsection 51(1) of the Income Tax Assessment Act 1936? Are refunds of equity in the fund assessable under subsection 25(1)?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 94/13.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. This Taxation Determination confirms that Wheat Industry Fund levies and refunds of equity in the fund are treated in the same way as the former Wheat Finance Fund levies and distributions which were the subject of Income Tax Ruling IT 224.

2. Both the Wheat Industry Fund and Wheat Research Trust Fund components of the levies are deductible under subsection 51(1) of the Act, being necessarily incurred by growers in carrying on their business.

3. Refunds of equity in the fund are assessable under subsection 25(1) as they are an integral part of the activities of the growers which produce assessable income.

Commissioner of Taxation
22/7/93

References


BO A42

ISSN 1038 - 8982

Related Rulings/Determinations:

IT 224
TR 92/9

Subject References:
primary production
allowable deductions

Legislative References:
ITAA 25(1)
ITAA 51(1)


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