INCOME TAX ASSESSMENT ACT 1997 - SECT 243.57 Effect of Division on later capital allowance balancing adjustments
INCOME TAX ASSESSMENT ACT 1997 - SECT 243.57
Effect of Division on later capital allowance balancing adjustments(1) This section applies where this Division (other than section 243 - 65) has applied in relation to a debt and an amount is later included in the assessable income of an entity by virtue of a provision of this Act (other than this Division) as a result of the disposal of the * financed property the effect of which is to reverse a deduction covered by Step 1 in subsection 243 - 35(2).
(2) Any amount that would be included in the debtor's assessable income is reduced if the amount that would have been worked out under subsection 243 - 35(4) would have exceeded the amount worked out under subsection 243 - 35(2) if the following assumptions were applied in both subsections:
Assumptions to be applied
(1) That the debt was terminated at the time of the disposal of the * financed property, referred to in subsection (1) of this section.
(2) The amount in Step 2 in subsection 243 - 35(2) were increased by the amount that would otherwise be included in the debtor's assessable income.
(3) The amount worked out under subsection 243 - 35(4) were reduced by any amount by which:
(a) the amount arising as a result of the disposal that is taken into account for the purposes of the provision mentioned in subsection (1);
exceeds:
(b) the unpaid amount of the debt immediately before the time of the disposal of the * financed property, referred to in subsection (1).
(3) The amount is to be reduced by the amount of the excess.