Taxation Laws Amendment Act (No. 5) 2003 (142 of 2003)

Schedule 2   Thin Capitalisation: amendments taking effect on 1 July 2002

Part 5   Disallowed deductions not included in cost base of a CGT asset

Income Tax Assessment Act 1997

41   At the end of Subdivision 110-A

Add:

110-54 Debt deductions disallowed by thin capitalisation rules

Expenditure does not form part of the third element of the cost base to the extent that Division 820 (Thin capitalisation rules) prevented or prevents you, or a partnership in which you are or were a partner, from deducting it.