Page 101 - P6 Slide - Taxation - Lecture Day 1

Recoupments – reduction/cancellation

of debt (s 19)

• When will s 19 be applicable?

amount

owing to or debt that is owed by a person

by a person
is reduced by any amount,

AND

the amount of the debt was used, to fund expenditure for which a

deduction/allowance was granted

Trading AND Allowance

stock/other assets

reduction of the debt > consideration for the reduction

S19 N/A if debt reduction is a bequest, donation/taxable fringe benefit