Taxation Laws Amendment Act (No. 2) 1996 (76 of 1996)
Schedule 2 Amendment of the Income Tax Assessment Act 1936: forgiveness of commercial debts
Part 2 Consequential amendments
2 After subsection 51(1)
(1A) A deduction otherwise allowable under subsection (1) to a creditor in respect of a debt is reduced to the extent mentioned in subparagraph 245-90(3)(b)(i) of Schedule 2C if an agreement between the debtor and the creditor is made as mentioned in paragraph 245-90(3)(a) of Schedule 2C.