Income Tax Act 2007 section 809ZD

Section 809ZA: expectation that relevant capital payment will not be paid

Section 809ZD provides a deduction for lessors of plant and machinery who have been taxed on a capital receipt under section 809ZA, where they later reasonably expect that the capital payment will not actually be received in full.

• Where a lessor has been taxed on a capital receipt under section 809ZA but reasonably expects that the payment will not be made (in whole or in part), a deduction is available
• The deduction is given in the period of account during which the expectation of non-payment arises
• The amount of the deduction equals the amount the lessor reasonably expects will not be paid
• No other deduction is permitted in respect of the same expected non-payment