INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 230 - Taxation of financial arrangements  

Subdivision 230-A - Core rules  

Tax treatment of gains and losses from financial arrangements

SECTION 230-25   Associated financial benefits to be taken into account only once under this Act  

Application of section

230-25(1)  
This section applies to a *financial benefit whose amount or value is taken into account in working out whether you make, or the amount of, a gain or loss to which paragraph 230-20(1)(a), (b) or (c) applies. Associated financial benefit to be taken into account only once

230-25(2)  
A *financial benefit to which this section applies is not to be (to any extent):


(a) included in your assessable income; or


(b) allowable as a deduction to you;

under any provision of this Act outside this Division for the same or any other income year.

Exception for certain bad debts

230-25(3)  
If:


(a) a *financial benefit has been included in your assessable income under a provision of this Act outside this Division; and


(b) a bad debt deduction would have been allowed under section 25-35 in relation to the financial benefit;

subsection (2) does not prevent that bad debt deduction from being allowed under section 25-35 in relation to the financial benefit as if the debt were still outstanding.

Section does not give rise to exempt income

230-25(4)  
A *financial benefit is not to be treated as *exempt income merely because it is not included in your assessable income under this section.


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