Commentary on Sections Overview Chapter 1: Share incentive plans Section 987: Deduction for costs of setting up an approved share incentive plan
2532.This section gives a deduction for the costs setting up a SIP. It is based on paragraph 7 of Schedule 4AA to ICTA.
2533.Subsection (4) applies if there is a delay between the company incurring the costs and the SIP being approved. The deduction is given for the period of account in which the scheme is approved. This avoids the company having to amend its company tax return for the period in which the expenditure was incurred or in an extreme case being outside the time limit for amending that return.