INCOME TAX ASSESSMENT ACT 1997 - SECT 25.90 Deduction relating to foreign non - assessable non - exempt income

INCOME TAX ASSESSMENT ACT 1997 - SECT 25.90

    An * Australian entity can deduct an amount of loss or outgoing from its assessable income for an income year if:

  (a)   the amount is incurred by the entity in deriving income from a foreign source; and

  (b)   the income is * non - assessable non - exempt income under section   768 - 5, or section   23AI or 23AK of the Income Tax Assessment Act 1936 ; and

  (c)   the amount is a cost in relation to a * debt interest issued by the entity that is covered by paragraph   (1)(a) of the definition of debt deduction .

Note:   This section does not apply to a Division   230 financial arrangement.