Document ID: chunk:federal_register_of_legislation:C2016C00633:section:3:p2
Version: federal_register_of_legislation:C2016C00633
Segment Type: section
Provision Reference: s 3 (pt 2/2)
Character Range: 32428–33315

deductions for partly written‑off debt
 (4) If this Act applies to the transfer of a debt that has been partly written off, the maximum that the receiving corporation can deduct for the debt for one or more years of income under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997 is worked out using the formula:

where:
unrecouped deductions means the total of the amounts that the transferring corporation has deducted or can deduct for any year of income under:
 (a) section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997; or
 (b) section 63 or former section 51 of the Income Tax Assessment Act 1936;
reduced by the total of any amounts included in its assessable income in respect of the debt under:
 (c) Subdivision 20‑A of the Income Tax Assessment Act 1997; or
 (d) former subsection 63(3) of the Income Tax Assessment Act 1936.

Division 7—Interest withholding tax