Section DF 1 — Income Tax Act 2007: Government grants to businesses

DF 1 Government grants to businesses When this section applies (1) This section applies when— (a) a local authority or a public authority makes a payment to a person for a business that the person carries on; and (b) the payment— (i) is in the nature of a grant or subsidy to the person; or (ii) is a grant-related suspensory loan to the person; and (c) the payment is not in the nature of an advance or loan other than a grant-related suspensory loan; and (d) the person does not make an election that section CX 47(4) (Government grants to businesses) apply to the payment. When subsection (2) applies (1B) Subsection (2) applies when, in the absence of this section, the person would be allowed a deduction for expenditure by the person to which the payment by the local or public authority corresponds. No deduction (with exception) (2) The person is denied, to the extent of the amount of the payment, the deduction that they would have been allowed in the absence of this section. When subsection (4) applies (3) Subsection (4) applies when— (a) expenditure by the person in the acquisition, construction, installation, or extension of an item of depreciable property is expenditure to which the payment by the local or public authority corresponds; and (b) in the absence of this section, the person would be allowed a deduction for an amount of depreciation loss for the item of depreciable property. Amount of depreciation loss (4) For the purpose of quantifying the amount of depreciation loss, the amount of the expenditure is reduced by the amount of the payment. Amendment of assessment (5) Despite the time bar, the Commissioner may amend an assessment at any time in order to give effect to this section. Exclusion [Repealed] (6) [Repealed] Link with subpart DA (7) This section overrides the general permission. Defined in this Act: amount , assessment , business , Commissioner , deduction , depreciable property , depreciation loss , general permission , grant-related suspensory loan , local authority , pay , public authority , time bar , Compare: 2004 No 35 s DF 1 Section DF 1(1) heading: substituted (with effect on 1 October 2010), on 21 December 2010, by section 42(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130). Section DF 1(1): substituted (with effect on 1 October 2010), on 21 December 2010, by section 42(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130). Section DF 1(1B) heading: inserted (with effect on 1 October 2010), on 21 December 2010, by section 42(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130). Section DF 1(1B): inserted (with effect on 1 October 2010), on 21 December 2010, by section 42(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130). Section DF 1(3): substituted (with effect on 1 October 2010), on 21 December 2010, by section 42(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130). Section DF 1(6) heading: repealed (with effect on 1 October 2009), on 6 October 2009, pursuant to section 87(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section DF 1(6): repealed (with effect on 1 October 2009), on 6 October 2009, by section 87(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section DF 1 list of defined terms large budget screen production grant : repealed (with effect on 1 October 2009), on 6 October 2009, by section 87(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).