INCOME TAX ASSESSMENT ACT (No. 2) 1974 No. 126 of 1974 - SECT 27 Deductions of appropiations.

INCOME TAX ASSESSMENT ACT (No. 2) 1974 No. 126 of 1974 - SECT 27

27. Section 122G of the Principal Act is amended by omitting sub-section (5)
and substituting the following sub-section:-



"(5) A deduction is not allowable under this section in respect of-

   (a)  an appropriation of income derived after the end of the year of income
        that commenced on 1 July 1974; or

   (b)  an appropriation made by a taxpayer after 17 September 1974 of income
        derived in the year of income that commenced on 1 July 1974 or in a
        preceding year of income unless-

        (i)    the appropriation is for the purposes of expenditure that has
               been incurred by the taxpayer, or that the Commissioner is
               satisfied will be incurred by the taxpayer before 1 July 1976;
               and

        (ii)   the expenditure has been or will be incurred in pursuance of a
               contract made on or before 17 September 1974, being a contract
               under which property was to be acquired by, or work was to be
               performed for, the taxpayer.".