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 245-40  

245-40   Forgivenesses to which operative rules do not apply  

Subdivisions 245-C to 245-G do not apply to a *forgiveness of a debt if:

(a) the debt is waived and the waiver constitutes a *fringe benefit; or

Note:

The waiver by an employer of a debt owed by an employee is usually a fringe benefit: see section 14 of the Fringe Benefits Tax Assessment Act 1986 .

(b) the amount of the debt has been, or will be, included in the assessable income of the debtor in any income year; or

(c) the forgiveness is effected under an Act relating to bankruptcy; or

(d) the forgiveness is effected by will; or

(e) the forgiveness is for reasons of natural love and affection; or

(f) the debt is a *tax-related liability or a civil penalty under Division 290 in Schedule 1 to the Taxation Administration Act 1953 (about penalties for promoters and implementers of tax avoidance schemes).

Note:

If the forgiveness of your debt involved an arrangement which was entered into before 28 June 1996, see section 245-10 of the Income Tax (Transitional Provisions) Act 1997 .