Income Tax Assessment Act 1997

Div 396 repealed by No 41 of 2011, s 3 and Sch 5 item 158, effective 27 June 2011.

Subdiv 396-A repealed by No 41 of 2011, s 3 and Sch 5 item 158, effective 27 June 2011.

S 396-25 repealed by No 41 of 2011, s 3 and Sch 5 item 158, effective 27 June 2011. S 396-25 formerly read:

SECTION 396-25 Borrower cannot deduct LTF interest for which lender has tax offset  
396-25(1)
The total of amounts that an entity that is a borrower under a ^* land transport facilities borrowings agreement can deduct for an income year for ^* LTF interest covered by the agreement is reduced by:

1                               *Corporate tax rate

×   Tax offset         entitlement

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History

S 396-25(1) amended by No 97 of 2008 , s 3 and Sch 3 item 140, by substituting the formula, effective 3 October 2008. The formula formerly read:

'

1                                 *General company tax rate

×   Tax offset         entitlement

396-25(2)
In subsection (1):

tax offset entitlement
is the total of the amounts of ^* tax offset worked out under subsection 396-15(2) for LTF interest that is covered by the agreement and that is *derived by a lender in the income year.

396-25(3)
If the amount by which deductions for an income year are to be reduced by subsection (1) (or by a previous operation of this subsection) exceeds the total of those deductions:

(a) the deductions are reduced to nil; and

(b) the total amount that the borrower can deduct for the next income year for ^* LTF interest covered by the agreement is reduced by the total of:

(i) that excess; and

(ii) the amount worked out for that next income year using the formula in subsection (1).

Note:

This can happen where interest is incurred by the borrower in an income year after the income year in which it is derived by the lender.

S 396-25 inserted by No 16 of 1998.