INCOME TAX ASSESSMENT ACT 1997 - SECT 20.25 What is recoupment ?

INCOME TAX ASSESSMENT ACT 1997 - SECT 20.25

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.

Remission of general interest charge or shortfall interest charge

  (2A)   If:

  (a)   you have incurred expenditure that consists of * general interest charge or * shortfall interest charge; and

  (b)   the Commissioner remits any of that charge;

then you are taken to receive the remitted amount as recoupment of that expenditure.

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.