Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 9A - Offshore banking units  

Subdivision B - Interpretation  

SECTION 121EF   DEFINITIONS RELATING TO ALLOWABLE DEDUCTIONS OF AN OBU  

121EF(1)   Purpose of section.  

This section sets out certain definitions used in this Division relating to allowable deductions of an OBU in relation to a year of income.

121EF(2)   Allowable OB deduction.  

An allowable OB deduction is any of the following 3 kinds of allowable deduction:

(a) an exclusive OB deduction;

(b) a general OB deduction;

(c) an apportionable OB deduction.

121EF(3)   Exclusive OB deduction.  

An exclusive OB deduction is any deduction (other than a loss deduction) allowable from the OBU's assessable income of the year of income that relates exclusively to assessable OB income.

General OB deduction

121EF(4)    

A deduction that:

(a) is none of the following:

(i) a loss deduction;

(ii) an apportionable deduction;

(iii) an exclusive OB deduction;

(iv) an exclusive non-OB deduction; and

(b) is allowable from the OBU ' s assessable income of the year of income;

is a general OB deduction to the extent that:

(c) it is incurred in gaining or producing the OB income of the OBU; or

(d) it is necessarily incurred in carrying on a business for the purpose of gaining or producing the OB income of the OBU.

121EF(5)   Apportionable OB deduction.  

An apportionable OB deduction is so much of any apportionable deduction allowable from the OBU's assessable income of the year of income as is calculated by multiplying the deduction by the following fraction:

121EF(6)   Exclusive non-OB deduction.  

An exclusive non-OB deduction is any deduction (other than a loss deduction) allowable from the OBU's assessable income of the year of income that relates exclusively to assessable income that is not assessable OB income.

121EF(7)   Loss deduction.  

A loss deduction is any allowable deduction under Division 36 of the Income Tax Assessment Act 1997 .