Tax Laws Amendment (2005 Measures No. 5) Act 2005 (162 of 2005)

Schedule 6   Debt and equity interests

Part 1   Related party at call etc. loans

Income Tax Assessment Act 1997

5   At the end of section 164-20

Add:

(4) To avoid doubt, if:

(a) it appears that a debit to the company's *non-share capital account has arisen because an interest in the company appears to be, or have become, a *debt interest at a time in a particular income year; and

(b) because subsection 974-75(6) or 974-110(1A) is subsequently found not to apply in relation to the interest and that income year, the interest was not in fact, or did not in fact become, a debt interest at that time;

the debit referred to in paragraph (a) is taken never to have arisen.