Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 175 - Use of a company ' s tax losses or deductions to avoid income tax  

Subdivision 175-C - Tax benefits from unused bad debt deductions  

SECTION 175-80   When Commissioner can disallow deduction for bad debt  

175-80(1)    
This Subdivision sets out cases where the Commissioner may disallow some or all of a deduction for a debt (or part of a debt) that is owed to a company and is written off as bad in the income year.

175-80(2)    


However, the Commissioner cannot disallow any of the deduction if the company:


(a) fails to meet a condition in section 165-123 (about the company maintaining the same owners) in respect of the *first continuity period or the *second continuity period; but


(b) meets the condition in section 165-126 by satisfying the *business continuity test under section 165-210 .



 

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