Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 43.55

Anti - avoidance--arrangement etc. with tax - exempt entity

  (1)   You will not be allowed a deduction under this Division for an income year if the Commissioner is satisfied that:

  (a)   you entered into an * arrangement with:

  (i)   an entity to which section   50 - 5, 50 - 10, 50 - 15, 50 - 25, 50 - 30, 50 - 40 or 50 - 45 (dealing with * exempt income) applies; or

  (ii)   an STB (within the meaning of Division   1AB of Part   III of the Income Tax Assessment Act 1936 ) whose * ordinary income and * statutory income is exempt from income tax;

    under which you were to pay an amount, or transfer property, directly or indirectly, to the entity; and

  (b)   the amount of the payment or the value of the property is calculated by reference to the amount of a deduction allowable to you under this Division; and

  (c)   a purpose of the arrangement that is not a merely incidental purpose is to ensure that the benefit of the deduction would pass wholly or substantially to the entity, whether directly or indirectly.

  (2)   Subsection   (1) applies to * arrangements entered into with an entity referred to in subparagraph   (1)(a)(i) after 1   May 1980 that relate to deductions for * hotel buildings or * apartment buildings begun before 1   July 1997.

  (3)   Subsection   (1) also applies to * arrangements entered into with an entity referred to in subparagraph   (1)(a)(ii) after 30   June 1994 that relate to deductions for * hotel buildings or * apartment buildings begun before 1   July 1997.


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