Tax Laws Amendment (2010 Measures No. 2) Act 2010 (75 of 2010)

Schedule 1   Distributions to entities connected with a private company

Income Tax Assessment Act 1936

9   Section 109B

After:

An amount may be treated as a dividend even if it is paid or lent by the company to the shareholder or associate through one or more interposed entities. (See Subdivision E.)

Insert:

An amount may also be included in the assessable income of a shareholder or shareholder's associate if:

(a) a company has an unpaid present entitlement to income of a trust; and

(b) the trustee makes a payment or loan to, or forgives a debt of, the shareholder or associate.

(See Subdivisions EA and EB.)