Commentary on Sections Overview Chapter 2: Management expenses Section 1220: Meaning of “unallowable purpose”
3092.This section explains “unallowable purpose”, an expression used in section 1219(2)(b). It is based on section 75 of ICTA.
3093.Subsection (1) is the basic rule that explains the ordinary meaning of “unallowable purpose”.
3094.Subsection (2) extends “unallowable purpose” to include investments held in connection with arrangements to secure a tax advantage.