Tax Laws Amendment (Transfer of Provisions) Act 2010 (79 of 2010)

Schedule 2   Forgiveness of commercial debts

Part 1   Main amendments

Income Tax (Transitional Provisions) Act 1997

9   Before Division 247

Insert:

Division 245 - Forgiveness of commercial debts

Table of Subdivisions

245-A Application of Division 245 of the Income Tax Assessment Act 1997

Subdivision 245-A - Application of Division 245 of the Income Tax Assessment Act 1997

Table of sections

245-5 Application and saving

245-10 Pre-28 June 1996 arrangements etc.

245-5 Application and saving

(1) Division 245 of theIncome Tax Assessment Act 1997 applies to debts forgiven in:

(a) the 2010-11 income year; and

(b) later income years.

(2) Despite the repeal of Schedule 2C to theIncome Tax Assessment Act 1936,that Schedule continues to apply to debts forgiven in:

(a) the 2009-10 income year; and

(b) earlier income years.

(3) Subsection (2) does not limit the effect of section 8 of theActs Interpretation Act 1901 in relation to the repeal.

245-10 Pre-28 June 1996 arrangements etc.

(1) Subdivisions 245-C to 245-G of theIncome Tax Assessment Act 1997do not apply to a forgiveness of a debt if the forgiveness occurs in accordance with the terms of an arrangement that:

(a) was entered into on or before 27 June 1996; and

(b) is evidenced in writing otherwise than by a document evidencing the arrangement or transaction under which the debt arose.

(2) Those Subdivisions also do not apply to reduce your expenditure:

(a) if the asset in respect of which the expenditure was incurred was disposed of by you, or was lost or destroyed, on or before 27 June 1996; or

(b) to the extent (if any) to which the expenditure was recouped by you on or before 27 June 1996.