Taxation Determination

TD 98/21

Income tax: what is the benchmark interest rate applicable for the year of income commencing on 1 July 1998 for the purposes of Division 7A of Part III of the Income Tax Assessment Act 1936 ('the Act')?

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FOI status:

may be releasedFOI number: I 1017743

The number, subject heading, date of effect and paragraphs 1 (including the Note) to 5 of this Taxation Determination are a 'public ruling' for the purposes of Part IVAAA of the Taxation Administration Act 1953 and are legally binding on the Commissioner. Taxation Rulings TR 92/1 and TR 97/16 together explain when a Determination is a public ruling and how it is binding on the Commissioner.
Date of effect
Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

1. For the year of income commencing 1 July 1998, the benchmark interest rate for the purposes of sections 109N and 109E of the Act is 6.7% per annum.

2. The benchmark interest rate for the year of income commencing 1 July 1998 is relevant for loans made, or deemed to have been made, between 4 December 1997 and 30 June 1998.

Commissioner of Taxation
28 October 1998

Not previously issued in draft form


ATO references:
NO NAT 98/10780-1

ISSN 1038 - 8982

Related Rulings/Determinations:

TD 98/22

Subject References:
deemed dividends
private company distributions

Legislative References:
ITAA36 109E
ITAA36 109N

TD 98/21 history
  Date: Version: Change:
You are here 28 October 1998 Original ruling  
  4 May 2016 Withdrawn