Section CF 2 — Income Tax Act 2007: Remission of specified suspensory loans

CF 2 Remission of specified suspensory loans When this section applies (1) This section applies when a public authority— (a) grants a loan to a person for a business that the person carries on; and (b) designates the loan as a specified suspensory loan. Income (2) An amount remitted on the specified suspensory loan is income of the person. Timing of income (3) The amount is allocated in equal parts to the income year of remission and the following 2 income years. However, the person may choose to allocate some or all of the amount in the following 2 income years to an earlier income year that is 1 of the 3 income years. Business ceasing (4) If the person stops carrying on the business for which the specified suspensory loan was granted, an amount remitted that is allocated to a later income year is allocated to the income year in which the person stops carrying on the business. Defined in this Act: amount , business , income , income year , public authority Compare: 2004 No 35 s CF 2