Private ruling: Income tax
Date of advice: 26 June 2015
Published: June 2015

Ruling: In order to protect the privacy and commercial in-confidence components of this private ruling, the following summary is provided. | The taxpayer is proposing amendments to an existing arrangement. | The Commissioner ruled that: | • A certain provision does not apply to the amended arrangement. | • The taxpayer was denied a deduction for payments made in relation to the proposed amendments under subsection 8-1(2) of the Income Tax Assessment Act 1997 (ITAA 1997). | • The payments form part of the fourth element of the cost base of the CGT asset (i.e., the taxpayer's bundle of rights under the arrangement) under paragraph 110-25(5)(a) of the ITAA 1997. | • Subsection 110-25(5A) of the ITAA 1997 does not apply to exclude the payments from the fourth element of the cost base of the CGT asset. | • The payments are capital expenditure in relation to the business of the taxpayer for the purposes of section 40-880 of the ITAA 1997. | • Paragraph 40-880(5)(f) of the ITAA 1997 applies to deny a deduction under subsection 40-880(2) of the ITAA 1997 for the payments.