Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-10
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FINANCIAL TRANSACTIONS
Division 243
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Limited recourse debt
Subdivision 243-C
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Amounts included in assessable income and deductions
Operative provisions
SECTION 243-57 Effect of Division on later capital allowance balancing adjustments 243-57(1)
This section applies where this Division (other than section 243-65 ) has applied in relation to a debt and an amount is later included in the assessable income of an entity by virtue of a provision of this Act (other than this Division) as a result of the disposal of the *financed property the effect of which is to reverse a deduction covered by Step 1 in subsection 243-35(2) .
243-57(2)
Any amount that would be included in the debtor's assessable income is reduced if the amount that would have been worked out under subsection 243-35(4) would have exceeded the amount worked out under subsection 243-35(2) if the following assumptions were applied in both subsections: Assumptions to be applied
(1)
(2)
(3)(a) the amount arising as a result of the disposal that is taken into account for the purposes of the provision mentioned in subsection (1);
(b) the unpaid amount of the debt immediately before the time of the disposal of the *financed property, referred to in subsection (1).
243-57(3)
The amount is to be reduced by the amount of the excess.
View history note
Hide history noteSECTION 243-57 Effect of Division on later capital allowance balancing adjustments 243-57(1)
This section applies where this Division (other than section 243-65 ) has applied in relation to a debt and an amount is later included in the assessable income of an entity by virtue of a provision of this Act (other than this Division) as a result of the disposal of the *financed property the effect of which is to reverse a deduction covered by Step 1 in subsection 243-35(2) .
243-57(2)
Any amount that would be included in the debtor's assessable income is reduced if the amount that would have been worked out under subsection 243-35(4) would have exceeded the amount worked out under subsection 243-35(2) if the following assumptions were applied in both subsections: Assumptions to be applied
(1)
That the debt was terminated at the time of the disposal of the *financed property, referred to in subsection (1) of this section.
(2)
The amount in Step 2 in subsection 243-35(2) were increased by the amount that would otherwise be included in the debtor's assessable income.
(3)
The amount worked out under subsection 243-35(4) were reduced by any amount by which:
exceeds:
243-57(3)
The amount is to be reduced by the amount of the excess.
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