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INCOME TAX ASSESSMENT ACT 1997 - SECT 376.135

Production expenditure--specific exclusions

    Despite sections   376 - 125 and 376 - 130, the following expenditure of a company is not production expenditure of the company on a * film, except to the extent, if any, as mentioned in column 3 of the table:

 

Expenditure that does not count as production expenditure on a film

Item

This kind of expenditure by the company is not production expenditure ...

except to the extent to which the expenditure is ...

1

Financing expenditure

expenditure incurred by way of, or in relation to, the financing of the * film (including returns payable on amounts invested in the film and expenditure in relation to raising and servicing finance for the film)

* qualifying Australian production expenditure under item   6 of the table in subsection   376 - 150(1) and paragraph   (a) of item   5 of the table in subsection   376 - 170(2)

2

Development expenditure

* development expenditure on the * film

* qualifying Australian production expenditure under item   1 of the table in subsection   376 - 150(1)

3

Copyright acquisition expenditure

expenditure incurred in acquiring copyright, or a licence in relation to copyright, in a pre - existing work for use in the * film

* qualifying Australian production expenditure under item   2 of the table in subsection   376 - 150(1)

4

General business overheads

expenditure incurred to meet the general business overheads of the company that:

(a) are not incurred in, or in relation to, the * making of the * film; and

(b) are not reasonably attributable to:

(i) the use of equipment or other facilities for; or

(ii) activities undertaken in;

  the making of the film

* qualifying Australian production expenditure under item   1 of the table in subsection   376 - 165(1) or item   1 of the table in subsection   376 - 170(2)

5

Publicity and promotion expenditure

expenditure incurred in publicising or otherwise promoting the * film (including press expenses, still photography, videotapes, public relations and other similar expenses)

* qualifying Australian production expenditure under item   3 or 4 of the table in subsection   376 - 150(1) or item   6 of the table in subsection   376 - 170(2)

6

Deferments

amounts that are payable only out of the receipts, earnings or profits from the * film

 

7

Profit participation

amounts that:

(a) depend on the receipts, earnings or profits from the * film; or

(b) are otherwise dependent on the commercial performance of the film

 

8

Residuals

amounts payable in satisfaction of the residual rights of a person who is a member of the cast

paid out by the company before the * film is * completed

9

Advances

amounts paid by way of advance on a payment to which item   6, 7 or 8 applies to the extent to which it may become repayable by the person to whom it is paid

 

10

Acquisition of depreciating asset

expenditure to the extent to which it sets, or increases, the * cost of a * depreciating asset

This item has effect subject to subsections   376 - 125(6) and (7).

* qualifying Australian production expenditure under item   2 of the table in subsection   376 - 150(1)

11

Regulations

expenditure specified in regulations

 



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