Clause 11

in subsection (1), replace paragraph (d) (including the proviso) with —“(d)any bad debt incurred in any trade, business, profession or vocation that became bad during the period for which the income is being ascertained, and any of the following to the extent that it has been estimated, to the Comptroller’s satisfaction, to have become bad during that period: (i)any doubtful debt;

any other debt for which provisions have been made for impairment losses or expected credit losses (called in this paragraph provisioned debt),even if the bad debt, doubtful debt or provisioned debt was due and payable before the commencement of that period, but only if —

all sums recovered during that period on account of amounts previously written off or allowed in respect of bad debts, doubtful debts or provisioned debts (other than debts incurred before the commencement of the basis period for the first year of assessment under this Act) are for the purposes of this Act treated as receipts of the trade, business, profession or vocation for that period; and

the bad debts, doubtful debts or provisioned debts in respect of which a deduction is claimed were included as a trading receipt in the income of the year within which they were incurred;”;

after subsection (7), insert —“(7A) Despite subsection (1), no deduction is allowed to any person under that subsection in respect of any expenditure for which a deduction is allowed to that person under section 14ZJ.”; and

in subsection (8), after the definition of “deductible”, insert —“ “expected credit loss” has the meaning given by section 14G(7);”.