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Income Tax Assessment Act 1997
26‑5 Penalties26‑5 Penalties
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#### 26‑5 Penalties
(1) You cannot deduct under this Act:
(a) an amount (however described) payable, by way of penalty, under an \*Australian law or a \*foreign law; or
(b) an amount ordered by a court to be paid on the conviction of an entity for an offence against an \*Australian law or a \*foreign law.
(1A) Without limiting paragraph (1)(a), you cannot deduct under this Act the \*general interest charge or the \*shortfall interest charge.
(2) This section does not apply to an amount payable, by way of penalty, under Subdivision 162‑D of the \*GST Act.
> Note: See paragraph 25‑5(1)(ca) for the deductibility of penalties that arise under Subdivision 162‑D of the GST Act.