DA 1 General permission
Nexus with income

(1)

A person is allowed a deduction for an amount of expenditure or loss, including an amount of depreciation loss, to the extent to which the expenditure or loss is—

(a)

incurred by them in deriving—

(i)

their assessable income; or

(ii)

their excluded income; or

(iii)

a combination of their assessable income and excluded income; or

(b)

incurred by them in the course of carrying on a business for the purpose of deriving—

(i)

their assessable income; or

(ii)

their excluded income; or

(iii)

a combination of their assessable income and excluded income.

General permission

(2)

Subsection (1) is called the general permission.

Avoidance arrangements

(3)

Section GB 33 (Arrangements involving depreciation loss) may apply to override the general permission in relation to an amount of depreciation loss.

Defined in this Act: amount, assessable income, business, deduction, depreciation loss, excluded income, general permission, loss

Compare: 2004 No 35 s DA 1