Income Tax Assessment Act 1936
PART X
-
ATTRIBUTION OF INCOME IN RESPECT OF CONTROLLED FOREIGN COMPANIES
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.
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.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.