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Edited version of private advice

Authorisation Number: 1051809030769

Date of advice: 25 February 2021

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.