S 207-160 substituted for s 207-160, 207-165 and 207-170 by No 83 of 2004, s 3 and Sch 10 item 15, applicable to events that occur on or after 1 July 2002, subject to the rules on the application of Part 3-6 of the
Income Tax Assessment Act 1997
set out in the
Income Tax (Transitional Provisions) Act 1997
. S 207-170 formerly read:
distributions that flow indirectly to a partner in a partnership
For the purposes of this Subdivision, a *franked distribution is treated as an
it *flows indirectly to an entity as partner in a *partnership; and
s interest in the partnership:
was acquired, or was acquired for a period that was extended, at or after the commencing time; or
was acquired as part of a *financing arrangement for the entity (including an arrangement extending to an earlier arrangement) entered into at or after the commencing time; and
having regard to the matters in subsection (2), the distribution could reasonably be regarded as equivalent to the payment of interest on a loan.
A *distribution that *flows indirectly to a partner in a *partnership can reasonably be regarded as equivalent to the payment of interest on a loan if:
a share of the *net income of the partnership is included in the partner
s assessable income, for the income year in which the distribution is made, under subsection
Income Tax Assessment Act 1936
a share of the *partnership loss of the partnership is allowable as a deduction to the entity, for the income year in which the distribution is made, under subsection 92(2) of that Act; and
the whole or a part of that share is attributable to the distribution; and
having regard to the following matters, that amount could reasonably be regarded as equivalent to the payment of interest on a loan:
the way in which the amount was calculated;
the conditions applying to the inclusion of the amount;
any other relevant matters.
, for the purposes of subsection (1), is 7.30 pm by legal time in the Australian Capital Territory on 13 May 1997.
S 207-170 inserted by No 48 of 2002.