Taxation Determination

TD 2000/39

Income tax: capital gains: what does the word 'incur' in subsection 124-75(2) of the Income Tax Assessment Act 1997 mean?

Please note that the PDF version is the authorised version of this ruling.

FOI status:

may be releasedFOI number: I 1022891

Preamble

The number, subject heading, date of effect and paragraph 1 of this Taxation Determination are a 'public ruling' for the purposes of Part IVAAA of the Taxation Administration Act 1953 and are legally binding on the Commissioner. The remainder of the Determination is administratively binding on the Commissioner. Taxation Rulings TR 92/1 and TR 97/16 together explain how a Determination is legally or administratively binding.

Date of effect

This Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

1. The word 'incur' in the context of subsection 124-75(2) of the Income Tax Assessment Act 1997 means, in relation to expenditure in acquiring a CGT asset, that you:

(a): outlay expenditure; or
(b): have definitively committed yourself, or have completely subjected yourself, to a presently existing liability to outlay the expenditure.

Note:

2. The word 'incur' has the same meaning in subsection 124-75(2) as it has in its context in the general deduction provision in subsection 8-1(1).

Commissioner of Taxation
13 September 2000

Previously issued as TD 1999/D56