Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

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

Subdivision EB - Unpaid present entitlements - interposed entities  

SECTION 109XH   AMOUNT AND TIMING OF PAYMENT OR LOAN THROUGH INTERPOSED ENTITIES  

Amount of payment or loan

109XH(1)   [ Amount determined by Commissioner]  

The amount the trustee is taken under section 109XF or 109XG to have paid or lent the target entity is the amount (if any) determined by the Commissioner.

109XH(2)   [ Determination of amount]  

In determining the amount of the payment or loan, the Commissioner must take account of:


(a) the amount the interposed entity paid or lent the target entity; and


(b) how much (if any) of that amount the Commissioner believes represented consideration payable to the target entity by:


(i) the trustee; or

(ii) any of the interposed entities;
for anything (assuming that the consideration payable equals that for similar transactions at arm's length).

109XH(3)   [ Unpaid present entitlement amount]  

The total of the amounts determined under subsection (1) for payments and loans in relation to which section 109XB applies because of the same present entitlement mentioned in paragraph 109XA(1)(c) , (2)(b) or (3)(b) must not exceed the unpaid present entitlement mentioned in subsection 109XA(4) .

Timing of payment or loan

109XH(4)  
The trustee is taken under section 109XF or 109XG to have made the payment or loan at the time the interposed entity made the payment or loan mentioned in paragraph 109XF(1)(c) or 109XG(1)(c) to the target entity.


 

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