Draft Taxation Determination

TD 93/D48 (Withdrawn)

Income tax: if a person buys an entire business operation including the book debts, can he claim a deduction for those debts which later prove to be bad debts ?

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    This document has been Withdrawn.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

No. Section 63(1)(a) requires that the debt, in order to be deductible under this section, must have been brought to account as assessable income by the taxpayer who claims the deduction. Therefore, the taxpayer (ie. the purchaser) could not claim for those book debts as he was not the person who originally returned those debts as assessable income.

Commissioner of Taxation
4 March 1993

References


BO MPS 657/1

ISSN 1038 - 8982

Related Rulings/Determinations:

EDR 42

Subject References:
bad debts

Legislative References:
ITAA 63

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