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Deductions are available for bad debts where:
Consequently, you should review your debtors to determine if there are any bad debts that should be written off prior to 30 June. To claim a deduction there must be little or no likelihood of the debt being recovered. Therefore, you would be expected to have made genuine attempts to recoup the debt including repeated contact with the debtor and, depending on the size of your organisation, engaging a debt collector.
To evidence the write off, you should ensure that the debt has been physically removed from your debtors' ledger. Make sure the entry has passed through the debtors' ledger at 30 June and maintain evidence of the decision to write off.