Document ID: chunk:federal_register_of_legislation:C2004C01257:clause:2_1:p18
Version: federal_register_of_legislation:C2004C01257
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 18/20)
Character Range: 52238–55049

any amounts paid under a replacement debt.

(3) The debtor's *capital allowance deductions in respect of the expenditure or the *financed property were increased by the amount of the capital allowance deduction referred to in subsection (1) of this section.

 (3) The deduction is to be reduced by the amount of the excess.

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.

243‑58  Adjustment where debt only partially used for expenditure

  If the debt is only partially used to finance the expenditure, or the property, in respect of which the *capital allowance deductions referred to in Step 1 in subsection 243‑35(2) are allowed, the amount of any deduction, any reduction in a deduction or any amount included in assessable income is to be so much as is reasonable taking into account the proportion of the debt that is used for that purpose.

Subdivision 243‑D—Special provisions

Table of sections

Operative provisions

243‑60 Application of Division to partnerships
243‑65 Application where partner reduces liability
243‑70 Application of Division to companies ceasing to be 100% subsidiary
243‑75 Application of Division where debt forgiveness rules also apply

Operative provisions

243‑60  Application of Division to partnerships

  This Division applies to a partnership in respect of the partnership's debts and in respect