Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p14
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 14/16)
Character Range: 390898–393597

withholding the amount, you fail to comply with section 16‑70 in that Schedule in relation to that amount.
 (2) You cannot deduct under this Act interest (within the meaning of Division 11A of Part III of the Income Tax Assessment Act 1936), or a *royalty, that is in the form of a *non‑cash benefit if:
 (a) section 14‑5 or 14‑10 in Schedule 1 to the Taxation Administration Act 1953 requires you to pay an amount to the Commissioner before providing the benefit, because of Subdivision 12‑F in that Schedule; and
 (b) you fail to pay the amount as required by that section.
 (3) If:
 (a) apart from subsection (1) or (2), you can deduct interest (within the meaning of Division 11A of Part III of the Income Tax Assessment Act 1936) or a *royalty for an income year; and
 (b) the *withholding tax payable for the interest or the royalty is paid;
you can deduct the interest or royalty for that income year.

26‑25A  Payments to employees—labour mobility programs

No deduction to extent amount not withheld
 (1) You cannot deduct under this Act salary, wages, commission, bonuses or allowances from which Subdivision 12‑FC in Schedule 1 to the Taxation Administration Act 1953 (about labour mobility programs) requires you to withhold an amount, to the extent that:
 (a) you fail to withhold the amount; or
 (b) after withholding the amount, you fail to comply with section 16‑70 in that Schedule in relation to that amount.
Note: Section 16‑70 in that Schedule requires you to pay the amount to the Commissioner.

Deduction to extent amount not withheld but withholding tax paid
 (2) You can deduct, for an income year, salary, wages, commission, bonuses or allowances to the extent that:
 (a) you cannot deduct the salary, wages, commission, bonuses or allowances for that income year only because of subsection (1) of this section; and
 (b) the *labour mobility program withholding tax payable for the salary, wages, commission, bonuses or allowance is paid.

26‑26  Non‑share distributions and dividends
 (1) A company cannot deduct under this Act:
 (a) a *non‑share distribution; or
 (b) a return that has accrued on a *non‑share equity interest.
 (2) A company cannot deduct a *dividend paid on an *equity interest in the company as a *general deduction under this Act.

26‑30  Relative's travel expenses
 (1) You cannot deduct under this Act a loss or outgoing you incur, insofar as it is attributable to your *relative's travel, if:
 (a) you travelled in the course of performing your duties as an employee, or in the course of carrying on a *business for the purpose of gaining or producing your assessable income; and
 (b) your relative accompanied you while you travelled.

Exception to