INCOME TAX ASSESSMENT ACT 1936

PART III - LIABILITY TO TAXATION  

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

Subdivision F - General rules applying to all amounts treated as dividends  

SECTION 109ZB   AMOUNT TREATED AS DIVIDEND IS NOT A FRINGE BENEFIT  

109ZB(1)   [Application to loans]  

This Division applies to a loan of an amount to an entity by a private company, even if the loan is made:


(a) to the entity in its capacity as an employee (as defined in the Fringe Benefits Tax Assessment Act 1986 ) or an associate of such an employee; or


(b) in respect of the employment of an employee (as defined in that Act).

Note:

This helps ensure that a loan is not a fringe benefit for the purposes of that Act.

109ZB(2)   [Application to debt forgiveness]  

This Division applies to a private company's forgiveness of a debt owed by an entity to the private company, even if:


(a) the entity owed the debt in its capacity as an employee (as defined in the Fringe Benefits Tax Assessment Act 1986 ) or an associate of such an employee; or


(b) the forgiveness occurs in respect of the employment of an employee (as defined in that Act).

Note:

This helps ensure that the forgiveness of a debt is not a fringe benefit for the purposes of that Act.

109ZB(3)   [Employees]  

However, this Division does not apply to a payment made to a shareholder, or an associate of a shareholder, in their capacity as an employee (as defined in the Fringe Benefits Tax Assessment Act 1986 ) or an associate of such an employee.


 

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