Section DA 2 — Income Tax Act 2007: General limitations

DA 2 General limitations Capital limitation (1) A person is denied a deduction for an amount of expenditure or loss to the extent to which it is of a capital nature. This rule is called the capital limitation . Private limitation (2) A person is denied a deduction for an amount of expenditure or loss to the extent to which it is of a private or domestic nature. This rule is called the private limitation . Exempt income limitation (3) A person is denied a deduction for an amount of expenditure or loss to the extent to which it is incurred in deriving exempt income. This rule is called the exempt income limitation . Employment limitation (4) A person is denied a deduction for an amount of expenditure or loss to the extent to which it is incurred in deriving income from employment. This rule is called the employment limitation . Withholding tax limitation (5) A person is denied a deduction for an amount of expenditure or loss to the extent to which it is incurred in deriving non-resident passive income of the kind referred to in section RF 2(3) (Non-resident passive income). This rule is called the withholding tax limitation . Non-residents’ foreign-sourced income limitation (6) A person is denied a deduction for an amount of expenditure or loss to the extent to which it is incurred in deriving non-residents’ foreign-sourced income. This rule is called the non-residents’ foreign-sourced income limitation . Relationship of general limitations to general permission (7) Each of the general limitations in this section overrides the general permission. Defined in this Act: amount , capital limitation , deduction , employment limitation , exempt income , exempt income limitation , general limitation , general permission , income from employment , loss , non-residents’ foreign-sourced income , non-residents’ foreign-sourced income limitation , private limitation , withholding tax limitation , Compare: 2004 No 35 s DA 2