Income Tax Assessment Act 1936

PART X - ATTRIBUTION OF INCOME IN RESPECT OF CONTROLLED FOREIGN COMPANIES  

Division 8 - Active income test  

Subdivision D - General interpretive provisions  

SECTION 442  

442   ASSUMPTION OF RIGHTS OF LENDER UNDER A LOAN  

In determining whether a company passes the active income test, if the company assumes the rights of a lender under a loan, this Part has effect, after that assumption, as if:

(a) the company had provided the loan to the borrower; and

(b) in a case where that assumption was made in the course of carrying on a particular business - interest, or a payment in the nature of interest, derived by the company from the loan had been derived from a loan made in the course of carrying on that business.