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.