Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 7A - Distributions to entities connected with a private company  

Subdivision D - Payments and loans that are not treated as dividends  

SECTION 109K  

109K   INTER-COMPANY PAYMENTS AND LOANS NOT TREATED AS DIVIDENDS  

A private company is not taken under section 109C or 109D to pay a dividend because of a payment or loan the private company makes to another company.

Note:

This does not apply to a payment or loan to a company in its capacity as trustee. (See section 109ZE .)