Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_2:p4
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 4/11)
Character Range: 15840–19439

or can deduct an amount for it for an earlier income year, under any provision of this Act.

Other recoupment

 (3) An amount you receive as *recoupment of a loss or outgoing (except by way of insurance or indemnity) is an assessable recoupment if:
 (a) you can deduct an amount for the loss or outgoing for the *current year; or
 (b) you have deducted or can deduct an amount for the loss or outgoing for an earlier income year;
under a provision listed in section 20-30.

20-25  What is recoupment?

General

 (1) Recoupment of a loss or outgoing includes:
 (a) any kind of recoupment, reimbursement, refund, insurance, indemnity or recovery, however described; and
 (b) a grant in respect of the loss or outgoing.

Amount paid for you

 (2) If some other entity pays an amount for you in respect of a loss or outgoing that you incur, you are taken to receive the amount as recoupment of the loss or outgoing.

Amount for disposing of right to recoupment

 (3) If you dispose of your right to receive an amount as *recoupment of a loss or outgoing you are taken to receive as recoupment of the loss or outgoing any amount you receive for disposing of that right. (The disposal need not be to another entity.)

Amount received that is recoupment to an unspecified extent

 (4) If you receive an amount that is, to an unspecified extent, *recoupment of a loss or outgoing, the amount is taken to be recoupment of the loss or outgoing to whatever extent is reasonable.

Balancing adjustments not covered

 (5) If a balancing adjustment is required for property on which you incurred a loss or outgoing, no part of the *termination value of the property is an amount you receive as recoupment of the loss or outgoing.

Note: The termination value is usually the amount you receive because of disposal, loss or destruction of the property.

20-30  Tables of deductions for which recoupments are assessable

 (1) This table shows the deductions under the Income Tax Assessment Act 1997 for which recoupments are assessable.

Note: References are to section numbers except where otherwise indicated.

Provisions of the Income Tax Assessment Act 1997
Item                                              Provision                                                                          Description of expense
  1.1                                             8-1 (so far as it allows you to deduct a bad debt, or part of a debt that is bad)  bad debts
  1.2                                             8-1 (so far as it allows you to deduct rates or taxes)                             rates or taxes
  1.3                                             25-5                                                                               tax-related expenses
  1.4                                             25-35                                                                              bad debts
  1.5                                             25-45                                                                              embezzlement or larceny by an employee
  1.6                                             25-60                                                                              election expenses, Commonwealth and State elections
  1.7                                             25-75                                                                              rates and land taxes on premises used to produce mutual receipts
  1.8                                             330-15                                                                             exploration or