Section 51AAA — Income Tax Assessment Act 1936: Deductions not allowable in certain circumstances

(1) Where: (a) an amount is included in the assessable income of a taxpayer of a year of income by section 102-5 of the Income Tax Assessment Act 1997 (about net capital gains) or subsection 124ZZB(1) of this Act (about notional capital gains of PDFs); (b) a deduction would, but for this section, be allowable under a provision listed in the table in subsection (2) to the taxpayer; and (c) if the amount had not been included in the assessable income the deduction would not be allowable; the deduction is not allowable. (2) The table lists provisions allowing deductions that are affected by subsection (1). Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold, are provisions of the Income Tax Assessment Act 1936. Deduction provisions affected by net capital gains limit Item Provision Description 1 Subdivision A of Division 3 of Part III General 2 section 8-1 General deductions 3 Division 25 Some expenses you can deduct 4 Division 30 Gifts or contributions 5 Division 34 Non-compulsory uniforms 6 Division 36 Tax losses of earlier income years 7 Subdivision 40-F Facilities to conserve or convey water 8 Subdivision 40-F Establishing grapevines 9 Subdivision 40-G Landcare operations 10 Subdivision 40-G Mains electricity supply 11 Subdivision 40-G Telephone lines 12 Division 165 Income tax consequences of changing ownership or control of a company 13 Subdivision 170-A Transfer of tax losses within wholly-owned groups of companies 14 Division 230 Financial arrangements