Taxation Ruling

IT 237W - Notice of Withdrawal

Primary production - expenditure on eradication of noxious weeds

• Please note that the PDF version is the authorised version of this withdrawal notice.

FOI status:

may be released

NOTICE OF WITHDRAWAL

Taxation Ruling IT 237 is no longer current and is therefore withdrawn.

The Ruling dealt with the non-deductibility of the capital cost of eradicating noxious weeds on land not previously used for primary production. However, for primary producers, the capital cost would be deductible over ten years under section 75A of the Income Tax Assessment Act 1936. The Addenda altered the Ruling after section 75D was inserted to state that the expenditure would be deductible in full in the year it is incurred.

Section 387-55 of the Income Tax Assessment Act 1997 makes it clear that the expenses will continue to be deductible in the year they are incurred where the land is used in a business of primary production.

Commissioner of Taxation
15/10/97

References

ATO references:
NO NAT 97/77725-3

Related Rulings/Determinations:

IT 237
IT 237A

Legislative References:
ITAA 36 75A
ITAA 36 75D
ITAA 97 387-55