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 expenditure

SECTION 245-160  

245-160   Amount applied in reduction of expenditure included in assessable income in certain circumstances  

If:

(a) after the *forgiveness income year you *recoup an amount of expenditure that is subject to reduction under section 245-145 ; and

(b) as a result of the recoupment, this Act applies to disallow any amount you have deducted in respect of the expenditure;

an amount equal to the amount, or the sum of the amounts, applied under this Subdivision in reduction of the expenditure is included in your assessable income in the income year in which the expenditure is recouped.