Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section sets out the condition that a company must meet to be able to deduct a debt or part of a debt that it writes off as bad in the * current year if:
(i) the company fails to meet a condition in subsection 165 - 123(2), (3) or (4); or
(ii) it is not practicable to show that the company meets the conditions in those subsections; and
(b) paragraph 165 - 120(1)(b) (about the Commissioner thinking it is unreasonable to require the company to meet the conditions in section 165 - 123) does not apply.
Note Other provisions may treat the company as meeting, or failing to meet, the conditions in subsections 165 - 123(2), (3) and (4).
(2) The company must satisfy the * business continuity test for the * second continuity period (the business continuity test period ). Apply the test to the * business the company carried on immediately before the time (the test time ) shown in the relevant item of the table.
Item | If: | The test time is: |
1 | It is practicable to show there is a period that meets these conditions: (a) the period starts at the start of the * first continuity period; (b) the company would meet the conditions in subsections 165 - 123(2), (3) and (4) if the period were the * ownership test period for the purposes of this Act | The latest time that it is practicable to show is in the period |
2 | Item 1 does not apply and either: (a) the debt was incurred before the * current year; or (b) the company came into being during the current year | The end of the day on which the debt was incurred |
3 | All these conditions are met: (a) item 1 does not apply; (b) the debt was incurred in the * current year; (c) the company was in being throughout the current year | The start of the current year |
For the business continuity test: see Subdivision 165 - E.