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Edited version of private advice
Authorisation Number: 1051648290547
Date of advice: 20 March 2020
Ruling
Subject: Deductibility of licence fee
Question
Is the entity entitled to an allowable deduction pursuant to section 8-1 of the Income Tax Assessment Act 1997 in respect of a licence fee incurred pursuant to a statutory Act?
Answer
Yes
Relevant facts and circumstances
The taxpayer (the entity) applied for a private ruling on the application of section 8-1 of the Income Tax Assessment Act 1997, to an annual licence fee required to be paid by the entity pursuant to a statutory Act.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1