Income Tax Act 2007 section 798

Meaning of "non-taxable consideration" etc.

Section 798 defines what counts as "non-taxable consideration" and how it is measured for the purposes of the film-related loss relief restrictions in section 797.

• Consideration is "non-taxable" if it would not ordinarily be subject to income tax, ignoring the special charging provision in section 796
• Where a deduction has been made from non-taxable consideration, the full gross amount before the deduction is treated as the consideration received
• A deduction caught by this rule is one made in return for any person agreeing to, or helping to bring about, a relevant disposal or exit event
• The effect is to prevent the amount of non-taxable consideration being artificially reduced by netting off fees or other costs connected with the disposal or exit