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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.



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