Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 7A - Distributions to entities connected with a private company  

Subdivision EA - Unpaid present entitlements  

SECTION 109XC   MODIFICATIONS  

109XC(1)   Modifications for this Subdivision only.  

The modifications in this section have effect for the purposes of the operation of this Subdivision.

109XC(2)   General modifications.  

This Division (but not this Subdivision) applies to an actual transaction done by a trustee of a trust estate with these modifications:


(a) a reference (except in section 109Y ) to an amount paid to a private company has effect as a reference to an amount paid to the trustee; and


(b) a reference to a year of income of a private company has effect as a reference to the corresponding year of income of the trust estate; and


(c) a reference to the ordinary course of a private company's business has effect as a reference to the ordinary course of the trust estate's business.

109XC(2A)  
(Repealed by No 41 of 2005)

109XC(3)  
(Repealed by No 41 of 2005)

109XC(4)   Modified operation of section 109J .  

Section 109J does not apply to a payment to the extent that it is a discharge of or a reduction in a present entitlement.

109XC(5)  
(Repealed by No 41 of 2005)

109XC(6)   Modified operation of section 109R .  

For the purposes of applying section 109R to an actual transaction:


(a) a reference in that section to obtaining a loan from a private company has effect as a reference to obtaining a loan from the trustee; and


(b) a reference in that section to property transferred to a private company has effect as a reference to property transferred to the trustee; and


(c) a reference in that section to an amount paid by a private company for a transfer of property has effect as a reference to an amount paid by the trustee for a transfer of property.

109XC(7)   Modified operation of section 109Y .  

Section 109Y applies to the Division 7A amount in this way:


(a) assume that the private company referred to in subsection 109XA(1) , (2) or (3) had been taken to have paid a dividend to the shareholder or associate referred to in that subsection equal to the Division 7A amount; and


(b) assume that the dividend was taken to have been paid at the end of the year of income of the company in which the actual transaction took place; and


(c) a reference in that section to a private company's distributable surplus has effect as a reference to the distributable surplus of the private company referred to in paragraph (a).

109XC(8)   Certain provisions do not apply.  

Subsection 109D(1A) , sections 109K , 109NA and 109NB and paragraph 109R(3)(a) , do not apply to an actual transaction.


 

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