Income Tax Assessment Act 1936
PART X
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ATTRIBUTION OF INCOME IN RESPECT OF CONTROLLED FOREIGN COMPANIES
Division 8
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Active income test
Subdivision D
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General interpretive provisions
SECTION 442
442
ASSUMPTION OF RIGHTS OF LENDER UNDER A LOAN
In determining whether a company passes the active income test, if the company assumes the rights of a lender under a loan, this Part has effect, after that assumption, as if:
(a) the company had provided the loan to the borrower; and
(b) in a case where that assumption was made in the course of carrying on a particular business - interest, or a payment in the nature of interest, derived by the company from the loan had been derived from a loan made in the course of carrying on that business.
View history note
Hide history noteIn determining whether a company passes the active income test, if the company assumes the rights of a lender under a loan, this Part has effect, after that assumption, as if:
(a) the company had provided the loan to the borrower; and
(b) in a case where that assumption was made in the course of carrying on a particular business - interest, or a payment in the nature of interest, derived by the company from the loan had been derived from a loan made in the course of carrying on that business.