Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 16/54)
Character Range: 1126262–1129160

of the Income Tax Assessment Act 1936.
 (7) Your deductions under this Division may be reduced if any of your commercial debts have been forgiven in the income year: see Subdivision 245‑E.
 (8) Where you have had a deduction under this Division an amount may be included in your assessable income if the expenditure was financed by limited recourse debt that has terminated: see Division 243.

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.

Subdivision 43‑B—Establishing the deduction base

Guide to Subdivision 43‑B

43‑60  What this Subdivision is about

      This Subdivision explains the meaning of the terms construction expenditure, construction expenditure area and pool of construction expenditure.

Table of sections
43‑65 Explanatory material

Operative provisions
43‑70 What is construction expenditure?
43‑72 Meaning of forestry road, timber operation and timber mill building
43‑75 Construction expenditure area
43‑80 When capital works begin
43‑85 Pools of construction expenditure
43‑90 Table of intended use at time of completion of construction
43‑95 Meaning of hotel building and apartment building
43‑100 Certificates by Industry Innovation and Science Australia

43‑65  Explanatory material
  Expenditure in respect of the construction of capital works is only eligible for a deduction under this Division if there is a construction expenditure area for the capital works. The area defined as the construction expenditure area may comprise the whole of the capital works or only