Income Tax Assessment Act 1936
Div 7A inserted by No 47 of 1998.
If the target entity is lent an amount by the interposed entity, this Division operates as if the private company had made a loan (the
) of the amount (if any) determined by the Commissioner to the target entity when the interposed entity made the loan to the target entity.
Subsection 109D(4) specifies the time at which a loan is made.109W(2) How big is the notional loan?
(a) the amount the interposed entity lent the target entity; and
(b) how much (if any) of that amount the Commissioner believes represented consideration payable to the target entity by the private company or any of the interposed entities for anything (assuming that the consideration payable equals that for similar transactions at arm's length). 109W(3) Notional repayments of notional loan.
When working out whether the private company is taken under section 109D to pay a dividend as a result of the notional loan, and the amount of any such dividend, assume that the target entity repays an amount of the notional loan equal to the amount worked out using the formula:
|Repayment made by target
entity to lender
Amount of notional loan
Amount actually lent to target entity
S 109W inserted by No 47 of 1998.
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.