Taxation Laws Amendment Act (No. 3) 1992 (98 of 1992)

Part 2   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 5   Amendments relating to debts

26   Bad debts etc. of money-lenders not allowable deductions where attributable to listed country branches

Section 63D of the Principal Act is amended:

(a) by omitting from subsection (1) all the words from and including "Where" to the end of paragraph (1)(a) and substituting:
          

"Subject to section 63F, where:

(a) apart from this section and section 63F, a deduction would be allowable to a taxpayer:

(i) under section 51 or 63 in respect of the writing off of a debt as bad; or

(ii) under section 63E in respect of a debt/equity swap in relation to a debt; and";

(b) by inserting in subsection (2) ", or in respect of which there is a debt/equity swap (within the meaning of section 63E)," after "written off";
          

(c) by adding at the end the following subsection:
          

"(3) Where a part of a debt is written off as bad, this section applies as if the part were an entire debt that is written off as bad.".