Income tax: if a moneylender (A) sells its loan book to a taxpayer (B) and later B writes off some of the debts in the loan book as bad, can B claim those bad debts as deductions under paragraph 63(1)(b)?

Taxation Determination TD 93/152 is withdrawn with effect from today.

The Determination was issued to clarify the circumstances under which the purchaser of a debt could claim a tax deduction for a bad debt under paragraph 63(1)(b) of the Income Tax Assessment Act 1936 . Paragraph 25-35(1)(b) of the Income Tax Assessment Act 1997 makes it clear that for the bad debt deduction to be made available, the taxpayer claiming the deduction must have lent the money in the ordinary course of a business money lending conducted by the taxpayer. This Determination is therefore no longer required.