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
- 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.