Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 245 - Forgiveness of commercial debts  

Subdivision 245-G - Record keeping  

SECTION 245-265   Keeping and retaining records  

245-265(1)  
If you incur a debt, you must keep any records that are necessary to enable the following matters to be readily found out:

(a) the date on which you incurred the debt;

(b) the identity of the creditor;

(c) the amount of the debt;

(d) the terms of repayment of the debt;

(e) if the debt is not a *moneylending debt and you and the creditor were not dealing with each other at arm ' s length in respect of the incurring of the debt - your capacity at the time when the debt was incurred to pay the debt when it falls due;

(f) if your debt is *forgiven - the date of the forgiveness and the amount offset under section 245-65 (if any) in respect of the debt.

Note:

There is an administrative penalty if you do not keep or retain records as required by this section: see section 288-25 in Schedule 1 to the Taxation Administration Act 1953 .

245-265(2)  
If a company and another company that are *under common ownership cease to be under common ownership, each company must keep any records that are necessary to enable the following matters to be readily found out:

(a) the date on which the companies ceased to be under common ownership;

(b) the identity of each entity that was a *controller (for CGT purposes) of the company immediately before the companies ceased to be under common ownership;

(c) the identity of each entity that was a controller (for CGT purposes) of the company immediately after the companies ceased to be under common ownership.

245-265(3)  
You must keep the records required by subsection (1) or (2) in writing in the English language or so as to enable them to be readily accessible and convertible into writing in the English language.

245-265(4)  
Subject to subsection (5), you must keep the records required by subsection (1) until:

(a) if paragraph (b) does not apply - the end of 5 years after the debt was *forgiven; or

(b) if the period within which the Commissioner may, under section 170 of the Income Tax Assessment Act 1936 , amend your assessment for the income year to which the records relate, or in which a transaction or act to which the records relate was completed, is extended under subsection 170(7) of that Act - the later of:

(i) the end of the assessment period as so extended; and

(ii) the end of the period of 5 years mentioned in paragraph (a).

245-265(5)  
Subsection (4) does not require you to keep records after the debt is paid.

245-265(6)  
Subject to subsection (7), each company that keeps any records required by subsection (2) must retain the records until the end of the second income year after the income year in which the companies ceased to be *under common ownership.

245-265(7)  
If a debt of one of the companies mentioned in subsection (2) was *forgiven at any time after the companies ceased to be *under common ownership and before the end of the second income year after the income year in which the cessation occurred, each company that keeps records required by that subsection must retain the records until the time specified in subsection (4).

245-265(8)  
You commit an offence if you fail to comply with a provision of this section.

Penalty: 30 penalty units.

245-265(9)  
An offence against subsection (8) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code .

245-265(10)  
This section does not limit the application of any other provision of this Act relating to the keeping or retention of records.