Taxation Laws Amendment Act (No. 3) 1992 (98 of 1992)

Part 2   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 5   Amendments relating to debts

25   Bad debts etc. of a company may be allowable deductions where company carries on same business

Section 63C of the Principal Act is amended by adding at the end the following subsections:

"(3) Where a part of a debt is written off by a company as bad, the preceding provisions of this section apply as if the part were an entire debt that is written off by the company as bad.

"(4) This section has the same effect in relation to an allowable deduction under section 63E in respect of the whole or part of a debt that is extinguished as it has in relation to an allowable deduction under section 51 or 63 in respect of the whole or part of a debt that is written off as bad.".