Document ID: chunk:federal_register_of_legislation:C2005C00508:clause:1_1208b
Version: federal_register_of_legislation:C2005C00508
Segment Type: clause
Provision Reference: sch 1 cl 1208B
Character Range: 46795–48605

1208B  Permissible reductions of business and investment income

 (1) For the purposes of this Division, if a company or trust carries on a business or holds an investment, the company's or trust's ordinary income from the business or investment is to be reduced by:
 (a) losses and outgoings that relate to the business or investment and are allowable deductions for the purposes of section 51 of the Income Tax Assessment Act 1936 or section 8‑1 of the Income Tax Assessment Act 1997, as appropriate; and
 (b) depreciation that relates to the business or investment and is an allowable deduction for the purposes of subsection 54(1) of the Income Tax Assessment Act 1936 or Division 42 of the Income Tax Assessment Act 1997; and
 (c) amounts that relate to the business or investment and are allowable deductions under any other provision of the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997.

 (2) However, the rule in subsection (1) does not apply to:
 (a) an ineligible deduction (see subsection (3)); or
 (b) an ineligible amount (see subsection (4)); or
 (c) an ineligible part of a deduction (see subsection (5)).

 (3) The Secretary may, by writing, determine that a specified deduction is an ineligible deduction for the purposes of this section.

 (4) The Secretary may, by writing, determine that a specified amount is an ineligible amount for the purposes of this section.

 (5) The Secretary may, by writing, determine that a specified part of a specified deduction is an ineligible part of the deduction for the purposes of this section.

 (6) A determination under subsection (3), (4) or (5) has effect accordingly.

 (7) A determination under subsection (3), (4) or (5) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.