Section 63G — Income Tax Assessment Act 1936: Bad debts etc. of trust not allowable in certain circumstances

If: (a) a deduction is allowable from a trust’s assessable income of any year of income: (i) under former section 51 of this Act, under section 63 of this Act or under section 8-1 or 25-35 of the Income Tax Assessment Act 1997 in respect of the writing off of the whole or part of a debt as bad; or (ii) under subsection 63E(3) or (4) in respect of the extinguishment of the whole or part of a debt; and (b) the debt was incurred as well as written off or extinguished on the last day of the year of income; the deduction is not allowable. Schedule 2F may also prevent a taxpayer deducting an amount in respect of a debt in other circumstances.