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Ruling
Subject: Division 7A - loans to shareholder
The ruling concerned the following:
1. Does section 109N of the Income Tax Assessment Act 1936 (ITAA 1936) apply to:
· loans made by the private company to the shareholder; and
· loans made by the private company to the Executors of the Estate of the shareholder?
Decision
The Commissioner ruled that:
1. No. Section 109N of the ITAA 1936 does not apply to:
· loans made by the private company to the shareholder; and
· loans made by the private company to the Executors of the Estate of the shareholder.