Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision A - General  

SECTION 63G  

63G   BAD DEBTS, ETC. OF TRUST NOT ALLOWABLE IN CERTAIN CIRCUMSTANCES  

If:

(a) a deduction is allowable from a trust's assessable income of any year of income:

(i) under former section 51 of this Act, under section 63 of this Act or under section 8-1 or 25-35 of the Income Tax Assessment Act 1997 in respect of the writing off of the whole or part of a debt as bad; or

(ii) under subsection 63E(3) or (4) in respect of the extinguishment of the whole or part of a debt; and

(b) the debt was incurred as well as written off or extinguished on the last day of the year of income;

the deduction is not allowable.

Schedule 2F may also prevent a taxpayer deducting an amount in respect of a debt in other circumstances.