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Edited version of private advice
Authorisation Number: 1052126288775
Date of advice: 15 June 2023
Ruling
Subject: Non-cash business benefits
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 subsection 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.