Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

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

Division 27 - Effect of input tax credits etc. on deductions  

Subdivision 27-B - Effect of input tax credits etc. on capital allowances  

SECTION 27-105   Other Division 40 expenditure  

27-105(1)    
This section applies to expenditure for which an entity can deduct amounts under Division 40 (but not under Subdivision 40-B or 40-E , or Subdivision 40-I to the extent that that Subdivision relates to project pools).

27-105(2)    
The amount of the expenditure is reduced if the entity is or becomes entitled to an ^* input tax credit for a ^* creditable acquisition or ^* creditable importation to which the expenditure directly or indirectly relates. The reduction is the amount of the input tax credit that relates to that expenditure.

27-105(3)    
If the entity has a ^* decreasing adjustment in an income year that relates directly or indirectly to the expenditure, an amount equal to the decreasing adjustment is included in the entity ' s assessable income for that income year.

27-105(4)    
If the entity has an ^* increasing adjustment in an income year that relates directly or indirectly to the expenditure, the entity can deduct an amount equal to the increasing adjustment for that income year.

27-105(5)    

If the entity is a partnership and partners in that partnership can deduct amounts under Division 40 because section 40-570 or 40-665 applies, an amount equal to the ^* input tax credit, the ^* decreasing adjustment or the ^* increasing adjustment is apportioned to each of the partners as set out in subsection 40-570(2) or 40-665(2) .

27-105(6)    
However, this section does not apply to an ^* exempt entity.