Section DB 47 — Income Tax Act 2007: Payments for remitted amounts

DB 47 Payments for remitted amounts When this section applies (1) This section applies when— (a) a person is allowed a deduction in an income year of an amount that the person is liable to pay; and (b) the person’s liability for the amount is later remitted or cancelled, wholly or partly; and (c) the remission or cancellation is not a dividend; and (d) the person is not required to calculate a base price adjustment by section EW 29 (When calculation of base price adjustment required); and (e) the amount to which the remission or cancellation applies is assessable income of the person under section CG 2 (Remitted amounts); and (f) the person makes a payment for the amount to which the remission or cancellation applies. Amount, and timing, of deduction (2) The person is allowed a deduction for the amount of the payment in the income year in which it is made. Link with subpart DA (3) This section supplements the general permission. The general limitations still apply. Defined in this Act: amount , assessable income , deduction , dividend , general limitation , general permission , income year , pay , supplement , Compare: 2004 No 35 s DB 38