Section FO 8 — Income Tax Act 2007: Bad debts and expenditure or loss on resident’s restricted amalgamation

FO 8 Bad debts and expenditure or loss on resident’s restricted amalgamation When this section applies (1) This section applies when an amalgamating company ends its existence on a resident’s restricted amalgamation, and the amalgamated company at any time— (a) writes off as bad the amount of a debt that it acquires from the amalgamating company at the time of the amalgamation; or (b) incurs an amount of expenditure or loss, including an amount of depreciation loss, as a result of something that the amalgamating company did or did not do. Deduction of amalgamated company (2) The amalgamated company is allowed a deduction under section DV 15(2) (Amalgamated companies: property passing on resident’s restricted amalgamation) for the amount if— (a) the amalgamating company would have been allowed the deduction but for the amalgamation; and (b) the amalgamated company is not otherwise allowed the deduction. Defined in this Act: amalgamated company , amalgamating company , amount , deduction , depreciation loss , loss , resident’s restricted amalgamation , Compare: 2004 No 35 s FE 3