Income Tax Assessment Act 1936

Div 3 heading inserted by No 172 of 1978.

S 73CA repealed by No 93 of 2011, s 3 and Sch 3 item 44, effective 8 September 2011. For application, savings and transitional provisions see note under s 82KZLB . S 73CA formerly read:

SECTION 73CA GUARANTEED RETURNS TO INVESTORS  
73CA(1)
For the purposes of interpretation, this section is to be read and construed as if it were part of section 73B .

73CA(2)
Where:

(a) an amount or amounts would, but for this section, be allowable as a deduction or deductions under section 73B , 73BA or 73BH , as affected by section 73C to an eligible company in respect of expenditure incurred in a year of income; and

(b) that amount or the sum of those amounts exceeds the amount of the expenditure; and

(c) the Commissioner is satisfied that, when the expenditure was incurred, the company was not at risk in respect of the whole or a part of the expenditure;

the following provisions of this section have effect.

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History

S 73CA(2) amended by No 101 of 2006 , s 3 and Sch 2 item 251, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .

S 73CA(2) amended by No 170 of 2001.

73CA(3)
If the Commissioner is so satisfied in respect of the whole of the expenditure, the amount, or the sum of the amounts, referred to in paragraph (2)(a) is taken to be reduced by the amount of the excess referred to in paragraph (2)(b).

73CA(4)
If the Commissioner is so satisfied in respect of part of the expenditure, the amount, or the sum of the amounts, referred to in paragraph (2)(a) is taken to be reduced by an amount ascertained in accordance with the formula:

Excess   ×

Part of expenditure not at risk   The amount of the expenditure

where:

Excess means the amount of the excess referred to in paragraph (2)(b).

Part of expenditure not at risk means the part of the expenditure in respect of which the Commissioner is satisfied that the company was not at risk when the expenditure was incurred.

73CA(5)
For the purposes of the application of this section in relation to any expenditure incurred by a company, the company is taken to have not been at risk at the time when the expenditure was incurred in respect of so much of the expenditure as does not exceed any consideration that, in the opinion of the Commissioner, because of:

(a) any act that occurred, transaction or agreement that was entered into, or circumstance that existed, before or at that time; or

(b) any act that was likely to occur, any transaction or agreement that was likely to be entered into, or any circumstance that was likely to exist, after that time;

the company or any associate of the company could reasonably have expected at that time to receive as the direct or indirect result of the incurring of the expenditure.

73CA(6)
In this section:

agreement
means any agreement, arrangement, understanding or scheme, whether formal or informal, whether express or implied, and whether or not intended to be enforceable by legal proceedings.

expenditure
does not include core technology expenditure.

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History

Definition of " expenditure " inserted by No 35 of 1992.

S 73CA inserted by No 35 of 1990.