Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 32.75

    If:

  (a)   you incur a loss or outgoing under an * arrangement; and

  (b)   someone provides * entertainment under the arrangement to you or someone else; and

  (c)   section   32 - 5 would have stopped you deducting the loss or outgoing under section   8 - 1 (which deals with general deductions) if you had incurred it in respect of providing that entertainment;

this Division applies to you as if you had incurred the loss or outgoing in providing that entertainment, to the extent (if any) that the Commissioner thinks reasonable.

Note:   This means that section   32 - 5 will prevent you from deducting the loss or outgoing under section   8 - 1 unless an exception applies.

Example:   A company pays $1,000 to sponsor a football game. Under the same arrangement, the company is given a viewing box at the game. To the extent the Commissioner thinks reasonable, he or she can treat the company as having incurred the $1,000 in providing entertainment.

Table of sections

32 - 80   Company directors

32 - 85   Directors, employees and property of wholly - owned group company

32 - 90   Partnerships