Income Tax Assessment Act 1997



Division 245 - Forgiveness of commercial debts  

Subdivision 245-B - What constitutes forgiveness of a debt  

Operative provisions

SECTION 245-40  

245-40   Forgivenesses to which operative rules do not apply  

Subdivisions 245-C to 245-G do not apply to a *forgiveness of a debt if:

(a) the debt is waived and the waiver constitutes a *fringe benefit; or


The waiver by an employer of a debt owed by an employee is usually a fringe benefit: see section 14 of the Fringe Benefits Tax Assessment Act 1986 .

(b) the amount of the debt has been, or will be, included in the assessable income of the debtor in any income year; or

(c) the forgiveness is effected under an Act relating to bankruptcy; or

(d) the forgiveness is effected by will; or

(e) the forgiveness is for reasons of natural love and affection; or

(f) the debt is a *tax-related liability or a civil penalty under Division 290 in Schedule 1 to the Taxation Administration Act 1953 (about penalties for promoters and implementers of tax avoidance schemes).


If the forgiveness of your debt involved an arrangement which was entered into before 28 June 1996, see section 245-10 of the Income Tax (Transitional Provisions) Act 1997 .

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