Section 336 — Income Tax Act 2007: Meaning of “making an investment”

Meaning of “making an investment” 336 1 For the purposes of this Part, an individual makes an investment in a body at any time when—

a the individual makes a loan (whether secured or unsecured) to the body, or b an issue of securities of or shares in the body, for which the individual has subscribed, is made to the individual.

2 The following provisions of this section apply for the purposes of subsection (1)(a).

3 An individual does not make a loan to a body if—

a the body uses overdraft facilities provided by the individual, or b the individual subscribes for or otherwise acquires securities of the body.

4 If the loan agreement authorises the body to draw down amounts of the loan over a period of time, the loan is treated as made at the time when the first amount is drawn down.