Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 272 - Interpretation  

Subdivision 272-B - Distribution of income or capital  

SECTION 272-60   OTHER DISTRIBUTIONS OF INCOME AND CAPITAL  

272-60(1)    
A company, partnership or trust (an entity ) also distributes income or capital to a person in circumstances not covered by section 272-45 , 272-50 or 272-55 if it:

(a) pays (including by way of a loan) or credits money of the entity to the person, or reinvests such money for the person; or

(b) transfers property of the entity to, or allows use of property of the entity by, the person; or

(c) deals with money or property of the entity for or on behalf of the person or as the person directs; or

(d) applies money or property of the entity for the benefit of the person; or

(e) extinguishes, forgives, releases or waives a debt or other liability owed by the person to the entity.

Limit on distributions

272-60(2)    
However, subsection (1) only applies if, and to the extent that:

(a) the amount paid, credited, reinvested or applied, the value of the property transferred, or the value of the other thing done;

exceeds:

(b) the amount or value of any consideration given in return.

Character of distributions

272-60(3)    
Each thing that is a distribution because of subsection (1) is a distribution of income unless it is clear that the money or property concerned was capital, or that the debt or liability was attributable to capital, of the entity.