Income Tax Assessment Act 1936
An amount is included, as if it were a dividend paid by the company at the end of the year of income of the company in which the actual transaction took place, in the assessable income of the shareholder or associate referred to in subsection 109XA(1), (2) or (3) if:
(a) had the actual transaction been done by a private company (the notional company ); and
(b) had the shareholder or associate been a shareholder of the notional company at the time the actual transaction took place;
an amount (the Division 7A amount ) would have been included in the shareholder's or associate's assessable income because of a provision of this Division outside this Subdivision.
Subject to section
, the amount that is included under subsection (1) is the Division 7A amount.
There are some modifications of this Division for the purposes of working out the Division 7A amount: see section 109XC .