Document ID: chunk:federal_register_of_legislation:C2025C00029:section:1:p28
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 1 (pt 28/35)
Character Range: 4128398–4131117

is reduced or eliminated, the debt had been terminated and remained unpaid and this section had not applied.
 (2) If this section applies to a debt in relation to a partner in a partnership, an amount is to be included in his or her assessable income.
 (3) This is how to work out the amount to be included:

      Working out the amount included
           Step 1. Work out which income years the partner was a member of the partnership and the partnership was entitled to a *capital allowance deduction in respect of the expenditure or the *financed property (including deductions because of balancing adjustments).
           Step 2. For each of those income years, work out the proportion of net income of the partnership or the partnership loss (as the case requires) that was included in the assessable income of the partner or which the partner could deduct.
           Step 3. For each of those income years, multiply the *capital allowance deductions in respect of the expenditure or the *financed property (including deductions because of balancing adjustments) of the partnership by the corresponding proportion worked out under Step 2. Sum all of the amounts.
           Step 4. Divide the sum by the total of the *capital allowance deductions in respect of the expenditure or the *financed property (including deductions because of balancing adjustments) of the partnership for all of those income years.
           Step 5. Work out the amount that would have been included in the partnership's assessable income under section 243‑40 if the debt had been terminated and remained unpaid and this section had not applied.
           Step 6. Multiply the amount worked out in Step 5 by the factor worked out in Step 4. The result is the amount to be included in the partner's assessable income.

243‑70  Application of Division to companies ceasing to be 100% subsidiary
 (1) This section applies to a company if:
 (a) the company ceases to be a *100% subsidiary in relation to at least one other company; and
 (b) at that time, the company is the debtor for a *limited recourse debt that has not been paid in full by the company; and
 (c) the creditor's rights under the debt are transferred or assigned to another entity.
 (2) If this section applies, this Division applies as if the debt were terminated, and refinanced with *non‑arm's length limited recourse debt, at the time the company ceased to be a *100% subsidiary of that other company.

243‑75  Application of Division where debt forgiveness rules also apply
 (1) This section is to remove doubt about how this Division and Division 245 apply where both apply to the same debt.
 (2) Where both apply:
 (a) this Division is to be applied first and