(1) Subject to subsection (2), the CEO may, on behalf of the Agency, decide to write off a debt, for a stated period or otherwise.
(2) The CEO may decide to write off a debt under subsection (1) if, and only if:
(a) the debt is irrecoverable at law; or
(b) the debtor has no capacity to repay the debt; or
(c) the debtor's whereabouts are unknown after all reasonable efforts have been made to locate the debtor; or
(d) it is not cost effective for the Agency to take action to recover the debt.
(3) For the purposes of paragraph (2)(a), a debt is irrecoverable at law if, and only if:
(a) the debt cannot be recovered by means of deductions, or legal proceedings, because the relevant 6 year period mentioned in section 183 has elapsed; or
(b) there is no proof of the debt capable of sustaining legal proceedings for its recovery; or
(c) the debtor is discharged from bankruptcy and the debt was incurred before the debtor became bankrupt and was not incurred by fraud; or
(d) the debtor has died leaving no estate or insufficient funds in the debtor's estate to repay the debt.
(4) A decision made under subsection (1) takes effect:
(a) if no day is specified in the decision--on the day the decision is made; or
(b) if a day is specified in the decision--on the day so specified (whether that day is before, on or after the day the decision is made).
(5) Nothing in this section prevents anything being done at any time to recover a debt that has been written off under this section.