It is the time of year when most business owners are thinking about their tax returns and of course looking at ways to reduce their tax liabilities for the financial year. One way to reduce your liability is to make sure that you claim a deduction for debts. By referring your debts to a debt collection agency or solicitor for debt recovery you can then write off that debt and you may be able to claim a deduction for income that cannot be recovered from a customer or debtor. This unrecoverable income is also known as a 'bad debt'. Income tax and