Document ID: chunk:federal_register_of_legislation:C2025C00014:section:82kzme:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 82KZME (pt 2/2)
Character Range: 552229–553927

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 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.