Document ID: chunk:federal_register_of_legislation:C2004A00684:clause:2_82kzme:p2
Version: federal_register_of_legislation:C2004A00684
Segment Type: clause
Provision Reference: sch 2 cl 82KZME (pt 2/2)
Character Range: 20030–22282

property; or
 (ii) shares that are listed for quotation in the official list of an approved stock exchange; or
 (iii) units in a trust that has at least 300 beneficiaries and is a widely held unit trust as defined in section 272‑105 in Schedule 2F;
where:
 (c) the taxpayer has obtained, or can reasonably be expected to obtain, rent, dividends or trust income from the agreement; and
 (d) the taxpayer has not obtained and will not obtain any other kind of assessable income from the agreement (except a capital gain or an insurance receipt); and
 (e) all aspects of the agreement have been conducted at arm's length.

Exception 2: infrastructure borrowings

 (6) The expenditure must not be an allowable deduction because of section 159GZZZZF in respect of an infrastructure borrowing as defined in subsection 93D(1) of the Development Allowance Authority Act 1992.

Exception 3: expenditure is excluded expenditure

 (7) The expenditure must not be excluded expenditure (see subsection 82KZL(1)).

Exception 4: expenditure meets a pre‑existing obligation

 (8) The expenditure by the taxpayer must not meet a contractual obligation that:
 (a) exists under an agreement at or before 1 pm (by legal time in the Australian Capital Territory) on 11 November 1999; and
 (b) requires the payment of an amount for the doing of a thing under the agreement; and
 (c) requires the payment to be made before the doing of the thing; and
 (d) cannot be escaped by unilateral action by the taxpayer.

Exception 5: agreement to which a product ruling applies

 (9) The expenditure must not be under an agreement to which a product ruling applies, describing expenditure under the agreement as being allowable as a deduction.

 (10) The product ruling must be made:
 (a) on or before 1 pm (by legal time in the Australian Capital Territory) on 11 November 1999; or
 (b) in response to an application for a product ruling where:
 (i) the application was received by the Commissioner on or before the time specified in paragraph (a); and
 (ii) the Commissioner acknowledged receiving the application.

 (11) In this section:

product ruling means a public ruling made under Part IVAAA of the Taxation Administration Act 1953 about a particular investment product.