SPECIALIST LIABILITY RULES
Other rules applying when entities become subsidiary members etc.
Deducting bad debts
What this Subdivision is about
An entity can deduct a bad debt that:
(a) has for a period been owed to a member of a consolidated group; and
(b) has for another period been owed to an entity that was not a member of that group;
only if each entity that has been owed the debt for such a period could have deducted the debt had it been written off as bad at the end of the period. This applies even if the debt is owed to the same entity for different periods.