Taxation Determination
TD 93/152W
Income tax: if a moneylender (A) sells its loan book to a taxpayer (B) and later B writes off some of the debts in the loan book as bad, can B claim those bad debts as deductions under paragraph 63(1)(b)?
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FOI status:
may be releasedFOI number: I 1215805Notice of Withdrawal
Taxation Determination TD 93/152 is withdrawn with effect from today.
The Determination was issued to clarify the circumstances under which the purchaser of a debt could claim a tax deduction for a bad debt under paragraph 63(1)(b) of the Income Tax Assessment Act 1936. Paragraph 25-35(1)(b) of the Income Tax Assessment Act 1997 makes it clear that for the bad debt deduction to be made available, the taxpayer claiming the deduction must have lent the money in the ordinary course of a business money lending conducted by the taxpayer. This Determination is therefore no longer required.
Commissioner of Taxation
15 October 1997
Previously issued as Drafts TD 93/D143, and
TD 92/D5
References
ATO references:
NO 93/2965-0 (NO)
Related Rulings/Determinations:
Taxation Ruling TR 92/18
Subject References:
bad debts
moneylending
deductions
transfer of loan book
Legislative References:
ITAA 63(1)(b)
Case References:
FC of T v. National Commercial Banking Corporation of Australia Limited
83 ATC 4715
(1983) 15 ATR 21
Case 49
(1949) 15 TBRD Case 49
Case C3
3 TBRD (NS) Case C3
Case 12
3 CTBR (NS) 73
Date: | Version: | Change: | |
5 August 1993 | Original ruling | ||
You are here | 15 October 1997 | Withdrawn |
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