Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 5/16)
Character Range: 369157–371684

law.
But only if it uses the premises:
 (c) for the purpose of producing mutual receipts; or
 (d) in carrying on a *business for the purpose of producing mutual receipts; or
 (e) for the purpose of producing amounts to which section 59‑35 applies (amounts that would be mutual receipts but for prohibition on distributions to members or issue of MCIs); or
 (f) in carrying on a *business for the purpose of producing amounts to which section 59‑35 applies.
Note: If the entity receives an amount as recoupment of the rates or land tax, the amount may be included in its assessable income: see Subdivision 20‑A

When premises used only for deductible purposes
 (2) The entity can deduct the whole of the rates or land tax if it uses the premises only in one or more of these ways:
 (a) for the purpose of producing mutual receipts;
 (b) in carrying on a *business for the purpose of producing mutual receipts;
 (c) for the *purpose of producing assessable income.

When premises used partly for deductible purposes
 (3) If the entity uses the premises partly in one or more of the ways referred to in subsection (2) and partly in some other way, it can deduct the rates or land tax to the extent that it uses the premises in one or more of the ways referred to in that subsection.

No deduction under section 8‑1
 (4) The entity cannot deduct the rates or land tax under section 8‑1 (which is about general deductions).

25‑85  Certain returns in respect of debt interests
 (1) This section deals with a *return that an entity pays or provides on a *debt interest.
 (2) The *return is not prevented from being a *general deduction for an income year under section 8‑1 merely because:
 (a) the return is *contingent on aspects of the economic performance (whether past, current or future) of:
 (i) the entity or a part of the entity's activities; or
 (ii) a *connected entity of the entity or a part of the activities of a connected entity of the entity; or
 (b) the return secures a permanent or enduring benefit for the entity or a connected entity of the entity.
 (3) If the *return is a *dividend, the entity can deduct the return to the extent to which it would have been a *general deduction under section 8‑1 if:
 (a) the payment of the return were the incurring by the entity of a liability to pay the same amount as interest; and
 (b) that interest were incurred in respect of the finance raised by the entity and in respect of which the return was paid or provided; and
 (c) the *debt interest retained its character as