Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 245 - Forgiveness of commercial debts  

Subdivision 245-B - What constitutes forgiveness of a debt  

Operative provisions

SECTION 245-45   Application of operative rules if forgiveness involves an arrangement  

245-45(1)    
If:

(a) the debtor and the creditor in relation to a debt enter into an *arrangement; and

(b) under the arrangement, the debtor ' s obligation to pay the debt is to cease at a particular future time; and

(c) the cessation of the obligation is to occur without the debtor incurring any financial or other obligation (other than an obligation that, having regard to the debtor ' s circumstances, is of a nominal or insignificant amount or kind);

Subdivisions 245-C to 245-G apply as if the debt were *forgiven when the arrangement is entered into.

245-45(2)    
If, after the arrangement is entered into, the debt is forgiven, the later forgiveness is disregarded for the purposes of those Subdivisions.