Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_12:p30
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 30/39)
Character Range: 213824–216484

(18) A right or obligation of a kind specified in the regulations for the purposes of this subsection is the subject of an exception.

230‑465  Ceasing to have a financial arrangement in certain circumstances
 (1) This section applies if:
 (a) you cease to have a *financial arrangement (or part of a financial arrangement); and
 (b) you make a loss from ceasing to have the arrangement (or that part of the arrangement); and
 (c) if the arrangement is a marketable security (within the meaning of section 70B of the Income Tax Assessment Act 1936):
 (i) you did not acquire the arrangement in the ordinary course of trading on a securities market (within the meaning of that section); and
 (ii) at the time you acquired the arrangement, it was not open to you to acquire an identical financial arrangement in the ordinary course of trading on a securities market; and
 (d) if the arrangement is a marketable security—you did not dispose of the arrangement in the course of trading on a securities market; and
 (e) it would be concluded that you ceased to have the arrangement wholly or partly because there was an apprehension or belief that the other party or other parties to the arrangement were, or would be likely to be, unable or unwilling to discharge all their liabilities to pay amounts under the arrangement.
 (2) The amount of the loss is reduced by so much of that amount as is a loss of capital or a loss of a capital nature.
Note: However, the amount by which the loss is reduced is a capital loss.
 (3) In applying paragraph (1)(e), you must have regard to:
 (a) the financial position of the other party or parties to the *financial arrangement; and
 (b) the perceptions of the financial position of the other party or parties to the arrangement; and
 (c) other relevant matters.

230‑470  Forgiveness of commercial debts
  If a gain that you make from a *financial arrangement arises from the forgiveness of a debt (as defined in Subdivision 245‑B of Schedule 2C to the Income Tax Assessment Act 1936), the gain is reduced by:
 (a) if section 245‑90 (about agreements to forgo capital losses or revenue reductions) of that Schedule does not apply—the debt's net forgiven amount as defined in paragraph 245‑85(2)(a) of that Schedule; or
 (b) if that section does apply—the debt's provisional net forgiven amount as defined in paragraph 245‑85(2)(b) of that Schedule.
Note: Section 51AAA (about a net capital gains limit) of the Income Tax Assessment Act 1936 also has the effect of preventing you from deducting losses.

230‑475  Clarifying exceptions

Exceptions
 (1) To avoid doubt, this Division does not apply to your gains and losses from