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Edited version of private advice
Authorisation Number: 1051634935162
Date of advice: 12 February 2020
Ruling
Subject: Repayment of interest free loans (application of section 45B of the Income Tax Assessment Act 1936)
Question 1
Will the Commissioner make a determination under subsection 45B(3) of the Income Tax Assessment Act 1936 (ITAA 1936) that section 45C of the ITAA 1936 applies in relation to the whole, or a part, of the repayment of the Interest Free Loans in an income year?
Answer 1
The Commissioner has ruled on this question.
Question 2
Can the full amount of the repayments made on the Interest Free Loans in an income year be debited to the Company's non-share capital account pursuant to the operation of section 164-20 of the Income Tax Assessment Act (ITAA 1997)?
Answer 2
The Commissioner has ruled on this question.