Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 26.5

             (1)  You cannot deduct under this Act:

                     (a)  an amount (however described) payable, by way of penalty, under an * Australian law or a * foreign law; or

                     (b)  an amount ordered by a court to be paid on the conviction of an entity for an offence against an * Australian law or a * foreign law.

             (2)  This section does not apply to an amount payable, by way of penalty, under Subdivision 162-D of the * GST Act.

Note:          See paragraph 25-5(1)(ca) for the deductibility of penalties that arise under Subdivision 162-D of the GST Act.