Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 245-61 245-61 Special rule for working out the value of a previously assigned debt
If your debt has been assigned as mentioned in section 245-36 and is later *forgiven by the new creditor, the value of that debt when it is later forgiven is:
(a) if the debt was not a *moneylending debt and the creditor and the new creditor were not dealing with each other at *arm ' s length in connection with the assignment - the *market value of the debt at the time of the assignment; or
(b) in any other case - the sum of:
(i) the amount or market value of the consideration (if any) you paid or gave, or are required to pay or give, to the creditor in respect of the assignment; and
(ii) the amount or market value of the consideration (if any) the new creditor paid or gave in respect of the assignment.
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