Commonwealth Numbered Acts

INCOME TAX ASSESSMENT ACT 1997 No. 38 of 1997 - SECT 36.35

(1) If:

   (a)  you became bankrupt; or

   (b)  you were released from a debt by the operation of an Act relating to
        bankruptcy; before the income year, you cannot deduct a *tax loss that
        you incurred before the day on which you either became bankrupt or
        were released.

(2) If:

   (a)  you became bankrupt before the income year; and

   (b)  the bankruptcy is later annulled under section 74 of the
        Bankruptcy Act 1966 because your creditors have accepted your proposal
        for a composition or scheme of arrangement; and

   (c)  under the composition or scheme of arrangement, you have been, will be
        or may be released from some or all of the debts from which you would
        have been released if you had instead been discharged from the
        bankruptcy; you cannot deduct a *tax loss that you incurred before the
        day on which you became bankrupt.