Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 245 - Forgiveness of commercial debts  

Subdivision 245-E - Application of net forgiven amounts  

Reduction of tax losses

SECTION 245-115  

245-115   Total net forgiven amount is applied in reduction of tax losses  

The *total net forgiven amount is applied first, to the maximum extent possible, in reduction, in accordance with section 245-120 , of your *tax losses (if any) for any income years, if the tax losses could, if you had enough assessable income, be deducted in:

(a) the *forgiveness income year; or

(b) a later income year.