Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Financial Corporations (Transfer of Assets and Liabilities) Act 1993
1 Subsection 22(1)
Repeal the subsection, substitute:
General
(1) In relation to a transfer of a debt, these rules about deductions for bad debts have effect as shown in the table:
(a) section 25 - 35 of the Income Tax Assessment Act 1997 ;
(b) subsection 63(1A) of the Income Tax Assessment Act 1936 .
Effect of rules about deductions for bad debts | ||
Case | If: | then those rules have effect as if: |
1 | the debt was included in the transferring corporation's assessable income of a year of income | the debt had been included in the receiving corporation's assessable income of that year of income |
2 | the debt is in respect of money lent by the transferring corporation in the ordinary course of its business of lending money | the debt were in respect of money lent by the receiving corporation in the ordinary course of a business of lending money |
3 | the transferring corporation bought the debt in the ordinary course of its business of lending money | the receiving corporation had bought the debt in the ordinary course of a business of lending money |
2 Application of amendment
The amendment made by item 1 applies to assessments for the 1997 - 98 year of income and later years of income.