Income Tax Act 2007 section 545

Section 543(1)(f): meaning of expenditure

Section 545 clarifies what counts as "expenditure" for the purposes of the non-charitable expenditure rules in section 543(1)(f), including what is and what is not treated as expenditure.

• Expenditure includes spending of a capital nature, such as the acquisition of capital assets, but not expenditure on assets qualifying for capital allowances (as these are already accounted for elsewhere, for example in determining a trading loss)
• Investing the charitable trust's funds is not treated as expenditure for these purposes
• Making a loan from the charitable trust is not treated as expenditure for these purposes
• Repaying the whole or part of a loan made to the charitable trust is not treated as expenditure for these purposes