Section 109ZB — Income Tax Assessment Act 1936: Amount treated as dividend is not a fringe benefit

(1) 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. (2) 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. (3) 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.