INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
View history note
Hide history noteThis section applies to a debt owing to the NSW State Bank that existed immediately before the first taxing time if at that time there was, in the accounting records of the Bank, a doubtful debt provision in respect of the debt described as a specific provision .
121EQ(2) [Where debt allowable deduction to NSW State Bank]If this section applies to a debt, a deduction under this Act that, apart from this subsection, would be allowable to the NSW State Bank for the writing off of the whole or part of the debt as bad is not allowable to the extent that the amount written off equals the doubtful debt provision limit (see subsection (3)) in respect of the debt immediately before the writing off occurs.
121EQ(3) [Doubtful debt provision limit]The doubtful debt provision limit , in respect of a debt at a particular time, is:
(a) if subsection (2) has not applied in relation to any previous writing off of part of the debt - the amount of the specific provision in respect of the debt mentioned in subsection (1); or
(b) in any other case - the amount of the specific provision in respect of the debt mentioned in subsection (1), reduced by the sum of the amounts of deductions that, because of a previous application of subsection (2) in respect of the writing off of one or more parts of the debt as bad, have not been allowable to the Bank. 121EQ(4) [Debt of particular class covered by specific provisions]
(a) this section does not apply to a debt that existed immediately before the first taxing time; and
(b) the debt is included in a class of debts existing immediately before that time where, at that time, there was, in the accounting records of the NSW State Bank, a doubtful debt provision in respect of the class described as a specific provision ;
this section applies to the debt as if there were a specific provision in respect of the debt of the kind mentioned in subsection (1) of an amount worked out using the formula:
|
Amount of specific
provision for the class |
× |
Amount of the debt
Sum of the amounts of debts included in the class |
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.
