Show download pdf controls
  • Trustee loans

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Where a trustee makes a loan to a shareholder or associate of a private company and the private company is a beneficiary of the trust, a deemed loan may arise if:

    • the private company is, or has been, presently entitled to an amount from the net income of the trust estate
    • the trustee has not paid the amount to the private company and
    • the trustee has made a loan to a shareholder of the private company or an associate of the shareholder, after the time that the private company first became presently entitled to that amount.
    Last modified: 05 Dec 2006QC 16138