Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 245 - Forgiveness of commercial debts  

Subdivision 245-C - Calculation of gross forgiven amount of a debt  

Working out the gross forgiven amount

SECTION 245-75   Gross forgiven amount of a debt  

245-75(1)    
The gross forgiven amount of a debt is:

(a) if section 245-65 does not apply to the debt - the value of the debt when it was *forgiven (worked out under section 245-55 , 245-60 or 245-61 ); or

(b) if the value of the debt when it was forgiven exceeds the amount offset under section 245-65 in relation to the debt - the excess.

245-75(2)    
If the value of the debt when it was *forgiven is equal to or less than the amount offset:

(a) there is no gross forgiven amount in respect of the debt; and

(b) Subdivisions 245-D to 245-F (about how to work out the net forgiven amount of a debt and how to treat it) do not apply in respect of the debt.