Income Tax Act 2007 section 681AG

Aggregation and apportionment of payments

Section 681AG sets out how payments connected with transferred land should be aggregated and apportioned when applying the cap on deductible amounts under section 681AE.

• Where multiple payments relate to the same period, they must be added together for the purposes of comparing total payments against the commercial rent limit
• Where payments cover overlapping periods, each payment must be apportioned on a time basis across the periods it covers
• The apportioned amounts falling within the common (shared) part of overlapping periods must then be combined
• These aggregation and apportionment rules also apply to any part of a payment that has been carried forward under section 681AF and treated as made in a later period