Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 69.5

  (1)   An acquisition is not a * creditable acquisition to the extent that it is a * non - deductible expense.

  (2)   An importation is not a * creditable importation to the extent that it is a * non - deductible expense.

  (3)   An acquisition or importation is a non - deductible expense if it is not deductible under Division   8 of the * ITAA 1997 because of one of the following:

  (a)   section   26 - 5 of the * ITAA 1997 (Penalties);

  (b)   section   26 - 30 of the * ITAA 1997 (Relative's travel expenses);

  (c)   section   26 - 40 of the * ITAA 1997 (Maintaining your family);

  (d)   section   26 - 45 of the * ITAA 1997 (Recreational club expenses);

  (e)   section   26 - 50 of the * ITAA 1997 (Expenses for a leisure facility);

  (f)   Division   32 of the * ITAA 1997 (Entertainment expenses);

  (g)   Division   34 of the * ITAA 1997 (Non - compulsory uniforms);

  (h)   section   51AK of the * ITAA 1936 (Agreements for the provision of non - deductible non - cash business benefits).

  (3A)   An acquisition or importation is also a non - deductible expense to the extent that it is not deductible under Division   8 of the * ITAA 1997 because of one of the following:

  (a)   section   51AEA of the * ITAA 1936 (Meal entertainment--election to use the 50/50 split method);

  (b)   section   51AEB of the ITAA 1936 (Meal entertainment--election to use the 12 week register method);

  (c)   section   51AEC of the ITAA 1936 (Entertainment facility--election to use the 50/50 split method).

  (4)   If the entity making the acquisition or importation is an * exempt entity, the acquisition or importation is a non - deductible expense if it would have been a non - deductible expense under subsection   (3) or (3A) had the entity not been an exempt entity.

  (5)   This section has effect despite sections   11 - 5 and 15 - 5 (which are about what is a creditable acquisition and what is a creditable importation).