Income Tax Assessment Act 1936
Sections and provisions with full text and the judgments that cite each one.
Section 103A — Private companies
(1) For the purposes of this Division, a company is a private company in relation to the year of income if the company is not a public company in relation to the year of income. (2) For the purposes…
Section 109 — Excessive payments to shareholders, directors and associates deemed to be dividends
(1) If a private company pays or credits to an associated person an amount (in this subsection called the excessive amount) that is, or purports to be: (a) remuneration for services rendered by the…
Section 109BA — Application of Division to non-share dividends
This Division: (a) applies to a non-share equity interest in the same way as it applies to a share; and (b) applies to an equity holder in the same way as it applies to a shareholder; and (c) applies…
Section 109CA — Payment includes provision of asset
(1) In this Division, payment to an entity includes the provision of an asset for use by the entity. Note: This includes provision under a lease or licence. Example: Yacht builder Mainbrace…
Section 109NA — Certain liquidator’s distributions and loans not treated as dividends
A private company is not taken under section 109C or subsection 109D(1) to pay a dividend because of a distribution or loan made in the course of the winding-up of the company by a liquidator. Note:…
Section 109RA — Demerger dividends not treated as dividends
This Division does not apply to a demerger dividend to which section 45B does not apply.
Section 109UA — Certain liabilities under guarantees treated as payments
(1) Section 109T operates as if one entity (the first entity) makes a payment to a second entity if the first entity guarantees a loan the second entity makes to a third entity (the target entity)…
Section 109XA — Payments, loans and debt forgiveness by a trustee in favour of a shareholder etc. of a private company with an unpaid present entitlement
Payments (1) Section 109XB applies if: (a) a trustee makes a payment (including a payment through an interposed entity as described in section 109XF) to a shareholder or an associate of a shareholder…
Section 109ZA — No dividend taken to be paid for withholding tax purposes
If a private company is taken under this Division to have paid a dividend to an entity, disregard the dividend for the purposes of: (a) Division 11A of Part III (which deals with withholding tax on…
Section 109ZCA — Treatment of dividend that is reduced on account of an amount included in assessable income under Subdivision EA
(1) This section sets out special rules for dealing with a dividend (the later dividend) distributed by a private company if: (a) an amount is included in the assessable income of a shareholder, or…
Section 109B — Simplified outline of this Division
The following is a simplified outline of this Division: This Division treats 3 kinds of amounts as dividends paid by a private company: • amounts paid by the company to a shareholder or shareholder’s…
Section 109BB — Application of Division to closely-held corporate limited partnerships
This Division applies to a corporate limited partnership in relation to a year of income in the same way as it applies to a private company in relation to a year of income, if, any time during the…
Section 109NB — Loans to purchase shares under employee share schemes not treated as dividends
A private company is not taken under section 109D to pay a dividend because of a loan made solely for the purpose of enabling the shareholder, or an associate of the shareholder, to acquire an ESS…
Section 109RB — Commissioner may disregard operation of Division or allow dividend to be franked
(1) The Commissioner may make a decision under subsection (2) if: (a) this Division (disregarding this section) operates with the result that: (i) a private company is taken to pay a particular…
Section 109XB — Amounts included in assessable income
(1) An amount is included, as if it were a dividend paid by the company at the end of the year of income of the company in which the actual transaction took place, in the assessable income of the…
Section 109ZB — 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…
Section 109BC — Application of Division to non-resident companies
(1) This Division applies, in relation to a payment, loan or debt forgiveness, in relation to a private company that is a non-resident as if: (a) references in this Division to a year of income of…
Section 109C — Payments treated as dividends
When private company is taken to pay a dividend (1) A private company is taken to pay a dividend to an entity at the end of the private company’s year of income if the private company pays an amount…
Section 109RC — Dividend may be franked if taken to be paid because of family law obligation
(1) This section applies if a dividend is taken to be paid under this Division because of a family law obligation. (2) Subparagraph 202-45(g)(i) of the Income Tax Assessment Act 1997 does not make…
Section 109XC — Modifications
Modifications for this Subdivision only (1) The modifications in this section have effect for the purposes of the operation of this Subdivision. General modifications (2) This Division (but not this…
Section 109ZC — Treatment of dividend that is reduced on account of an amount taken under this Division to be a dividend
(1) This section sets out special rules for dealing with a dividend (the later dividend) distributed by a private company if some or all of the later dividend is set off against some or all of an…
Section 109D — Loans treated as dividends
Loans treated as dividends in year of making (1) A private company is taken to pay a dividend to an entity at the end of one of the private company’s years of income (the current year) if: (a) the…
Section 109RD — Commissioner may extend period for repayments of amalgamated loan
(1) The Commissioner may make a decision under subsection (2) if: (a) section 109E operates with the result that a private company is taken to pay a particular dividend to a particular entity (the…
Section 109XD — Forgiveness of loan debt does not give rise to assessable income if loan gives rise to assessable income
An amount is not included in the assessable income for a year of income of the shareholder or associate referred to in subsection 109XA(3) because of the forgiveness of an amount of a debt resulting…
Section 109ZD — Defined terms
In this Division: amalgamated loan has the meaning given by subsection 109E(3). arrangement has the meaning given by section 995-1 of the Income Tax Assessment Act 1997. associate has the meaning…
Section 109E — Amalgamated loan from a previous year treated as dividend if minimum repayment not made
Amalgamated loan treated as dividend in first year in which payment is less than minimum yearly repayment (1) A private company is taken to pay a dividend to an entity at the end of one of the…
Section 109XE — Simplified outline of this Subdivision
The following is a simplified outline of this Subdivision: Payments and loans This Subdivision allows an amount to be included in an entity’s (the target entity’s) assessable income under Subdivision…
Section 109ZE — Interpretation rules about entities
The rules in section 960-100 of the Income Tax Assessment Act 1997 about entities apply to this Division.
Section 109F — Forgiven debts treated as dividends
Forgiven debt treated as dividend (1) A private company is taken to pay a dividend to an entity at the end of the private company’s year of income if all or part of a debt the entity owed the private…
Section 109XF — Payments through interposed entities
(1) For the purposes of paragraphs 109XA(1)(a) and (1A)(a), a trustee is taken to have made a payment to a shareholder, or to an associate of a shareholder, (the target entity) of a private company…
Section 109G — Debt forgiveness that does not give rise to a dividend
Forgiveness of debt owed by company generally not treated as dividend (1) A private company is not taken under this Division to pay a dividend because a debt owed to it by another company is…
Section 109XG — Loans through interposed entities
Loans by a trustee through interposed entities (1) For the purposes of paragraph 109XA(2)(a), a trustee is taken to have made a loan (the notional loan) to a shareholder, or to an associate of a…
Section 109H — Simplified outline of this Subdivision
The following is a simplified outline of this Subdivision: This Subdivision sets out rules about payments and loans that are not treated as dividends. The following sorts of payments are not treated…
Section 109XH — Amount and timing of payment or loan through interposed entities
Amount of payment or loan (1) The amount the trustee is taken under section 109XF or 109XG to have paid or lent the target entity is the amount (if any) determined by the Commissioner. (2) In…
Section 109XI — Entitlements to trust income through interposed trusts
Entitlements through interposed trusts (1) For the purposes of paragraphs 109XA(1)(c), (2)(b) and (3)(b), a private company is taken to be or to become entitled to an amount from the net income of a…
Section 109J — Payments discharging pecuniary obligations not treated as dividends
A private company is not taken under section 109C to pay a dividend because of the payment of an amount, to the extent that the payment: (a) discharges an obligation of the private company to pay…
Section 109K — Inter-company payments and loans not treated as dividends
A private company is not taken under section 109C or 109D to pay a dividend because of a payment or loan the private company makes to another company. Note: This does not apply to a payment or loan…
Section 109L — Certain payments and loans not treated as dividends
(1) A private company is not taken under section 109C or 109D to pay a dividend because of a payment or loan the private company makes to an entity, to the extent that the payment or loan would be…
Section 109M — Loans made in the ordinary course of business on arm’s length terms not treated as dividends
A private company is not taken under section 109D to pay a dividend because of a loan made: (a) in the ordinary course of the private company’s business; and (b) on the usual terms on which the…
Section 109N — Loans meeting criteria for minimum interest rate and maximum term not treated as dividends
Criteria (1) A private company that makes a loan to an entity in one of the private company’s years of income is not taken under section 109D to pay a dividend at the end of the year of income…
Section 109P — Amalgamated loans not treated as dividends in the year they are made
A private company is not taken under section 109D to pay a dividend because of an amalgamated loan it makes. Note: A shortfall in a minimum yearly repayment of an amalgamated loan may be treated as a…
Section 109Q — Commissioner may allow amalgamated loan not to be treated as dividend
(1) A private company is not taken under section 109E to pay a dividend at the end of one of its years of income (the current year) because of an amalgamated loan to an entity if: (a) the amount paid…
Section 109R — Some payments relating to loans not taken into account
(1) This section provides for some payments to a private company in relation to a loan the private company made to an entity not to be taken into account for the purpose of working out: (a) how much…
Section 109S — Simplified outline of this Subdivision
The following is a simplified outline of this Subdivision: This Subdivision allows a private company to be taken under Subdivision B to pay a dividend to an entity (the target entity) if an entity…
Section 109T — Payments and loans by a private company to an entity through one or more interposed entities
(1) This Division operates as if a private company makes a payment or loan to an entity (the target entity) as described in section 109V or 109W if: (a) the private company makes a payment or loan to…
Section 109U — Payments and loans through interposed entities relying on guarantees
(1) This Division operates as if a private company makes a payment to an entity (the target entity) as described in section 109V if: (a) during a year of income the private company guarantees a loan…
Section 109V — Amount of private company’s payment to target entity through one or more interposed entities
Private company taken to pay if target entity is paid (1) If the target entity is paid an amount by the interposed entity, this Division operates as if the private company had paid the amount (if…
Section 109W — Private company’s loan to target entity through one or more interposed entities
Private company taken to lend if target entity receives loan (1) If the target entity is lent an amount by the interposed entity, this Division operates as if the private company had made a loan (the…
Section 109X — Operation of Subdivision D in relation to payment or loan
Payment or loan not affected by being made through interposed entity (1) Despite sections 109K and 109L, a private company may be taken under section 109C or 109D to pay a dividend as a result of…
Section 109Y — Proportional reduction of dividends so they do not exceed distributable surplus
Reduction of amounts of dividends (1) If, apart from this section, the sum of all the dividends a private company is taken under this Division to pay at the end of the year of income would be more…