Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 63G

                   If:

                     (a)  a deduction is allowable from a trust's assessable income of any year of income:

                              (i)  under former section 51 of this Act, under section 63 of this Act or under section 8-1 or 25-35 of the Income Tax Assessment Act 1997 in respect of the writing off of the whole or part of a debt as bad; or

                             (ii)  under subsection 63E(3) or (4) in respect of the extinguishment of the whole or part of a debt; and

                     (b)  the debt was incurred as well as written off or extinguished on the last day of the year of income;

the deduction is not allowable.

Schedule 2F may also prevent a taxpayer deducting an amount in respect of a debt in other circumstances.