Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 26 - Some amounts you cannot deduct, or cannot deduct in full  

Operative provisions  

SECTION 26-5   Penalties  

26-5(1)    
You cannot deduct under this Act:

(a) an amount (however described) payable, by way of penalty, under an ^* Australian law or a ^* foreign law; or

(b) an amount ordered by a court to be paid on the conviction of an entity for an offence against an ^* Australian law or a ^* foreign law.

26-5(2)    

This section does not apply to an amount payable, by way of penalty, under Subdivision 162-D of the ^* GST Act.

Note:

See paragraph 25-5(1)(ca) for the deductibility of penalties that arise under Subdivision 162-D of the GST Act.