21‑5 Writing off bad debts (taxable supp21‑5 Writing off bad debts (taxable supplies)

21‑5 Writing off bad debts (taxable supplies)

(1) You have a decreasing adjustment if: (a) you made a *taxable supply; and (b) the whole or part of the *consideration for the supply has not been received; and (c) you write off as bad the whole or a part of the debt, or the whole or a part of the debt has been *overdue for 12 months or more. The amount of the decreasing adjustment is 1/11 of the amount written off, or 1/11 of the amount that has been overdue for 12 months or more, as the case requires. (2) However, you cannot have an *adjustment under this section if you *account on a cash basis.