Tax Laws Amendment (2010 Measures No. 2) Act 2010 (75 of 2010)
Schedule 1 Distributions to entities connected with a private company
Income Tax Assessment Act 1936
28 Subsection 109Y(2) (definition of non-commercial loans)
Repeal the definition, substitute:
non-commercial loans means the total of:
(a) any amounts that:
(i) the company is taken under former section 108, or section 109D or 109E, to have paid as dividends in earlier years of income; and
(ii) are shown as assets in the company's accounting records at the end of year of income; and
(b) any amounts that are included in the assessable income of shareholders, or associates of shareholders, of the company under section 109XB as if the amounts were dividends paid by the company in earlier years of income.
Note: The total amount worked out under paragraph (b) might be reduced under subsection (2A).