Section DB 58 — Income Tax Act 2007: Adjustment for avoidance arrangements

DB 58 Adjustment for avoidance arrangements Deduction denied (1) An amount is not a deduction of a person if the deduction is denied under— (a) section GA 1 (Commissioner’s power to adjust): (b) section GB 17 (Excessive amounts for film rights or production expenditure): (c) section GB 18 (Arrangements to acquire film rights or incur production expenditure): (d) section GB 23 (Excessive remuneration to relatives): (e) section GB 25 (Close company remuneration to shareholders, directors, or relatives). Deduction (2) An amount treated as a deduction of a person under any of the following sections is a deduction of the person: (a) section GA 1 : (b) section GB 23 : (c) section GB 29 (Attribution rule: calculation): (d) section GB 46 (Deferral of surplus deductions from arrangements). Link with subpart DA (3) Subsection (1) overrides, and subsection (2) supplements, the general permission. The general limitations still apply. Defined in this Act: amount , arrangement , close company , Commissioner , deduction , depreciation loss , director , film production expenditure , film rights , general limitation , general permission , relative , shareholder , Compare: 2004 No 35 ss GB 1(1)–(2C) , GC 11A , GC 31 , GD 3(1), (2) , GD 5 , GD 12 , GD 12A