Section 412F — Income Tax Act 2007: Assigned loans treated as made by the assignee etc

Assigned loans treated as made by the assignee etc 412F 1 This section applies where—

a a person (“A”) is assigned the right to recover the principal of a loan, b the right is assigned through an operator (“O”),

c A makes a payment in consideration of the assignment, and d A does not further assign the right.

2 The loan is to be treated for the purposes of section 412A(1) as—

a having been made by A, and b having been made through O.

3 The amount (if any) of the principal of the loan which is treated as irrecoverable may not exceed the amount which is arrived at by—

a taking the amount of the payment mentioned in subsection (1)(c),

and b deducting any amount of the principal of the loan previously recovered by A.