| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051950251669
Date of advice: 24 February 2022
Ruling
Subject: Non-cash business benefits
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 whether, on the basis that a transfer of the assets to the taxpayer was regarded as a non-cash business benefit that is income derived under section 21A(2) of the Income Tax Assessment Act 1936, subsection 21A(3) of the Income Tax Assessment Act 1936 will reduce the amount brought into account as assessable income to Nil. The Commissioner ruled that subsection 21A(3) of the Income Tax Assessment Act 1936 will reduce the amount to Nil, as the taxpayer would have been entitled to a once-only deduction under section 8-1 of the Income Tax Assessment Act 1997 equal to 100% of the expenditure if it had, at the time the non-cash business benefit was provided, incurred and paid unreimbursed expenditure in respect of the provision of the non-cash business benefit.