Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 267 - Income tax consequences for non-fixed trusts of change in ownership or control  

Subdivision 267-C - Current year net income and tax loss, and certain debts incurred in current year  

SECTION 267-65   NON-FIXED TRUST MAY BE DENIED DEBT DEDUCTION  


Type of trust to which this section applies

267-65(1)    
This section applies to a trust that:


(a) can deduct in the income year (the test period ) an amount:


(i) under section 51 or 63 in respect of the writing off of the whole or part of a debt, incurred in the 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 the income year; and


(b) was a non-fixed trust at any time in the test period; 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

267-65(2)    
The trust cannot deduct the amount unless it meets:

  • • the condition in subsection 267-70(2) (if applicable); and
  • • the condition in section 267-75 .


  •  

    Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

    CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

    The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.