Section DC 9 — Income Tax Act 2007: Restrictive covenants or exit inducements

DC 9 Restrictive covenants or exit inducements Deduction (1) A person is allowed a deduction for expenditure that they incur that is income of another person under section CE 9 (Restrictive covenants) or CE 10 (Exit inducements). Exclusion (2) This section does not apply if— (a) the other person performs services for the person; and (b) expenditure that the person would have incurred for the services, if the other person had not derived an amount that is income under section CE 9 or CE 10 , would have been of a capital nature. Link with subpart DA (3) This section overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply. Defined in this Act: amount , capital limitation , general limitation , general permission , income , Compare: 2004 No 35 s DC 8