69‑5 Non‑deductible expenses do not give

69‑5 Non‑deductible expenses do not give rise to creditable acquisitions or creditable importations

(1) An acquisition is not a *creditable acquisition to the extent that it is a *non‑deductible expense. (2) An importation is not a *creditable importation to the extent that it is a *non‑deductible expense. (3) An acquisition or importation is a non‑deductible expense if it is not deductible under Division 8 of the *ITAA 1997 because of one of the following: (a) section 26‑5 of the *ITAA 1997 (Penalties); (b) section 26‑30 of the *ITAA 1997 (Relative’s travel expenses); (c) section 26‑40 of the *ITAA 1997 (Maintaining your family); (d) section 26‑45 of the *ITAA 1997 (Recreational club expenses); (e) section 26‑50 of the *ITAA 1997 (Expenses for a leisure facility); (f) Division 32 of the *ITAA 1997 (Entertainment expenses); (g) Division 34 of the *ITAA 1997 (Non‑compulsory uniforms); (h) section 51AK of the *ITAA 1936 (Agreements for the provision of non‑deductible non‑cash business benefits). (3A) An acquisition or importation is also a non‑deductible expense to the extent that it is not deductible under Division 8 of the *ITAA 1997 because of one of the following: (a) section 51AEA of the *ITAA 1936 (Meal entertainment—election to use the 50/50 split method); (b) section 51AEB of the ITAA 1936 (Meal entertainment—election to use the 12 week register method); (c) section 51AEC of the ITAA 1936 (Entertainment facility—election to use the 50/50 split method). (4) If the entity making the acquisition or importation is an *exempt entity, the acquisition or importation is a non‑deductible expense if it would have been a non‑deductible expense under subsection (3) or (3A) had the entity not been an exempt entity. (5) This section has effect despite sections 11‑5 and 15‑5 (which are about what is a creditable acquisition and what is a creditable importation).