Income Tax Assessment Act 1936
SCHEDULE 2F
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TRUST LOSSES AND OTHER DEDUCTIONS
Division 267
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Income tax consequences for non-fixed trusts of change in ownership or control
This section applies to a trust that:
(a) can deduct in the income year an amount:
(b) was a non-fixed trust at any time in the period (the test period ) beginning on the day the debt was incurred and ending at the end of the income year; and
(c) was not an excepted trust at all times in the test period.
The trust cannot deduct the amount unless it meets:•
the condition in subsection
267-30(2)
(if applicable); and
•
the condition in section
267-35
; and
•
the condition in subsection
267-40(2)
(if applicable); and
•
the condition in section
267-45
.
Subdivision 267-B
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Deducting tax losses, and certain amounts in respect of debts, from earlier years
SECTION 267-25
NON-FIXED TRUST MAY BE DENIED DEBT DEDUCTION
Type of trust to which this section applies
267-25(1)
This section applies to a trust that:
(a) can deduct in the income year an amount:
(i) under section 51 or 63 , or under section 8-1 or 25-35 of the Income Tax Assessment Act 1997 , in respect of the writing off of the whole or part of a debt, incurred in an earlier income year, as bad; or
(ii) under subsection 63E(3) or (4) in respect of a debt/equity swap relating to the whole or part of a debt incurred in an earlier income year; and
(b) was a non-fixed trust at any time in the period (the test period ) beginning on the day the debt was incurred and ending at the end of the income year; and
(c) was not an excepted trust at all times in the test period.
Note:
Subdivisions 709-D and 719-I of the Income Tax Assessment Act 1997 also affect when a trust that used to be a member of a consolidated group or MEC group may deduct a debt that used to be owed to a member of the group and that the trust writes off as bad.
Condition for deducting amount
267-25(2)
The trust cannot deduct the amount unless it meets:
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