15 Jan 099 ENCO and legally enforceable obligations - TD 2009/1This final Taxation Determination was issued on 14 January 2009. It was previously released in draft form as TD 2008/D14. Its full title is "Income tax: does subsection 974-135(1) of the Income Tax Assessment Act 1997 only apply to a legally enforceable obligation?" The answer given is No.
The Determination states, at para 17: "The Commissioner considers that the words 'in substance or effect' refer to both the contingency and the obligation. That is, the Commissioner considers that the words 'in substance or effect a non-contingent obligation' in subsection 974-135(1) are intended to be interpreted as 'in substance or effect an obligation that is, in substance or effect, non-contingent'."
For a copy of TD 2009/1, go here.