Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 65.55

Deduction for amounts paid for debts incurred before bankruptcy

             (1)  If:

                     (a)  you pay an amount in the * current year for a debt that you incurred in an earlier income year; and

                     (b)  you have a * tax offset referred to in section 65-50 for that earlier income year;

you can deduct the amount paid, but only to the extent that it does not exceed so much of the debt as the Commissioner is satisfied was taken into account in calculating the amount of the tax offset.

             (2)  The total of the following amounts cannot exceed the total of the expenditure that the Commissioner is satisfied was taken into account in calculating the amount of the * tax offset that you are unable to apply because of section 66-50:

                     (a)  your deductions under subsection (1) for amounts paid in the * current year or an earlier income year for debts incurred in the income year for which you have the tax offset; and

                     (b)  the expenditure that the Commissioner is satisfied was taken into account in calculating any amounts of the tax offset that, apart from section 65-50, would have been applied in reducing your * net exempt income for the current year or earlier income years.

   

Guide to Division 67



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback