INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 245 - Forgiveness of commercial debts  

Subdivision 245-A - Application of Division 245 of the Income Tax Assessment Act 1997  

SECTION 245-10   Pre-28 June 1996 arrangements etc.  

245-10(1)  
Subdivisions 245-C to 245-G of the Income Tax Assessment Act 1997 do not apply to a forgiveness of a debt if the forgiveness occurs in accordance with the terms of an arrangement that:


(a) was entered into on or before 27 June 1996; and


(b) is evidenced in writing otherwise than by a document evidencing the arrangement or transaction under which the debt arose.

245-10(2)  
Those Subdivisions also do not apply to reduce your expenditure:


(a) if the asset in respect of which the expenditure was incurred was disposed of by you, or was lost or destroyed, on or before 27 June 1996; or


(b) to the extent (if any) to which the expenditure was recouped by you on or before 27 June 1996.




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