Commonwealth Consolidated Acts Commonwealth Consolidated ActsObject
(1) The object of this section is to limit the circumstances in which an entity can deduct a swap loss (as defined in section 63E of the Income Tax Assessment Act 1936 ) resulting from a debt/equity swap (as defined in that section) to circumstances similar to those in which this Subdivision lets an entity deduct a debt it writes off as bad.
Modified operation of sections 709 - 205, 709 - 210 and 709 - 215
(2) Sections 709 - 205, 709 - 210 and 709 - 215 (except subsection 709 - 215(2)) apply in relation to the extinction (however described) of a debt as part of a debt/equity swap in the same way as they apply in relation to the writing off of a debt as bad.
(3) Subsection 709 - 215(1):
(a) applies in relation to a swap loss from a debt/equity swap in the same way as it applies in relation to a debt, or part of a debt; and
(b) applies as if paragraph 709 - 215(1)(a) referred to subsection 63E(3) of the Income Tax Assessment Act 1936 instead of sections 8 - 1 and 25 - 35.
(4) This section has effect despite subsection 63E(5) of the Income Tax Assessment Act 1936 .