INCOME TAX ASSESSMENT ACT 1936
(a) the private company makes a payment or loan to another entity (the first interposed entity ) that is interposed between the private company and the target entity; and
(b) a reasonable person would conclude (having regard to all the circumstances) that the private company made the payment or loan solely or mainly as part of an arrangement involving a payment or loan to the target entity; and
(i) the first interposed entity makes a payment or loan to the target entity; or
109T(2) This section operates regardless of certain factors.
(ii) another entity interposed between the private company and the target entity makes a payment or loan to the target entity.
(a) whether the interposed entity made the payment or loan to the target entity before, after or at the same time as the first interposed entity received the payment or loan from the private company; or
(b) whether or not the interposed entity paid or lent the target entity the same amount as the private company paid or lent the first interposed entity. 109T(3) This section does not operate if the payment or loan to the first interposed entity is treated as a dividend.
This Division does not operate as described in subsection (1) (and sections 109V and 109W ) if the private company is taken under Subdivision B (as it applies apart from this Subdivision) to pay a dividend as a result of the payment or loan to the first interposed entity.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.