Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) An acquisition is not a * creditable acquisition to the extent that it is a * non - deductible expense.
(2) An importation is not a * creditable importation to the extent that it is a * non - deductible expense.
(3) An acquisition or importation is a non - deductible expense if it is not deductible under Division 8 of the * ITAA 1997 because of one of the following:
(a) section 26 - 5 of the * ITAA 1997 (Penalties);
(b) section 26 - 30 of the * ITAA 1997 (Relative's travel expenses);
(c) section 26 - 40 of the * ITAA 1997 (Maintaining your family);
(d) section 26 - 45 of the * ITAA 1997 (Recreational club expenses);
(e) section 26 - 50 of the * ITAA 1997 (Expenses for a leisure facility);
(f) Division 32 of the * ITAA 1997 (Entertainment expenses);
(g) Division 34 of the * ITAA 1997 (Non - compulsory uniforms);
(h) section 51AK of the * ITAA 1936 (Agreements for the provision of non - deductible non - cash business benefits).
(3A) An acquisition or importation is also a non - deductible expense to the extent that it is not deductible under Division 8 of the * ITAA 1997 because of one of the following:
(a) section 51AEA of the * ITAA 1936 (Meal entertainment--election to use the 50/50 split method);
(b) section 51AEB of the ITAA 1936 (Meal entertainment--election to use the 12 week register method);
(c) section 51AEC of the ITAA 1936 (Entertainment facility--election to use the 50/50 split method).
(4) If the entity making the acquisition or importation is an * exempt entity, the acquisition or importation is a non - deductible expense if it would have been a non - deductible expense under subsection (3) or (3A) had the entity not been an exempt entity.
(5) This section has effect despite sections 11 - 5 and 15 - 5 (which are about what is a creditable acquisition and what is a creditable importation).