Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 245.45

  (1)   If:

  (a)   the debtor and the creditor in relation to a debt enter into an * arrangement; and

  (b)   under the arrangement, the debtor's obligation to pay the debt is to cease at a particular future time; and

  (c)   the cessation of the obligation is to occur without the debtor incurring any financial or other obligation (other than an obligation that, having regard to the debtor's circumstances, is of a nominal or insignificant amount or kind);

Subdivisions   245 - C to 245 - G apply as if the debt were * forgiven when the arrangement is entered into.

  (2)   If, after the arrangement is entered into, the debt is forgiven, the later forgiveness is disregarded for the purposes of those Subdivisions.