Section DB 15 — Income Tax Act 2007: Sureties

DB 15 Sureties When this section applies (1) This section applies when a surety incurs expenditure or loss under a security arrangement. No deduction (with exceptions) (2) Neither the surety nor a person with whom the surety was an associated person over the security arrangement’s term is allowed a deduction for the expenditure or loss to the extent to which the expenditure or loss is due to— (a) the actions of the surety or a person with whom the surety was an associated person over the arrangement’s term; or (b) the occurrence of an event, if the occurrence could have been influenced by the surety or a person with whom the surety was an associated person over the arrangement’s term; or (c) the non-occurrence of an event, if the non-occurrence could have been influenced by the surety or a person with whom the surety was an associated person over the arrangement’s term. Link with subpart DA (3) This section overrides the general permission. Defined in this Act: associated person , deduction , general permission , loss , security arrangement , Compare: 2004 No 35 s DB 12