Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 139DC

             (1)  A taxpayer is entitled to an allowable deduction in the taxpayer's assessment in respect of income of a year of income (the benefit year ) if the taxpayer provides one or more qualifying shares or qualifying rights to another person in the benefit year that satisfy the following conditions:

                     (a)  the exemption conditions (see section 139CE);

                     (b)  the condition that no amount has been allowed, is allowable, or will be allowable, as a deduction in the assessment of the taxpayer in respect of income of any year of income in respect of expenditure incurred in providing the share or right.

             (2)  The amount of the deduction in respect of the shares or rights provided by the taxpayer to the person in the benefit year is the lesser of:

                     (a)  $1,000; and

                     (b)  the sum of the market values, at the time that the share or right is provided, of each qualifying share or qualifying right that satisfies the conditions in subsection (1) reduced by the sum of any amounts paid by the person as consideration for those shares or rights.

Note:          Only one deduction is allowable under this section in respect of each person to whom the taxpayer provided shares or rights in a year.