INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 11A - Dividends, interest and royalties paid to non-residents and to certain other persons  

Subdivision A - General  

SECTION 128G   DIVISION NOT TO APPLY TO INTEREST ON CERTAIN LOANS  

128G(1)   [Application of section]  

This section applies to interest in respect of a loan where:

(a) the loan was raised outside Australia;

(b) if the loan was raised by the issue of bearer debentures, the debentures were issued outside Australia by a company, the loan was raised in a currency other than the currency of Australia and the interest is or was paid outside Australia in a currency other than the currency of Australia; and

(c) the Commissioner has issued a certificate under section 128H in respect of the loan.

128G(2)   [Division not applicable]  

Tax is not payable, and shall be deemed not to have been payable, in accordance with this Division in respect of interest to which this section applies.

128G(3)   [Interest under contract entered into post-19 May 1983]  

This section does not apply to interest paid on or after the date of commencement of this subsection in respect of a loan raised in pursuance of a contractual obligation entered into on or after 20 May 1983.

128G(4)   [Interest under contract entered into before 20 May 1983]  

This section does not apply to interest paid after the date of commencement of this subsection in respect of a loan raised pursuant to a contractual obligation entered into before 20 May 1983 to the extent to which:

(a) the interest is paid in respect of loan money that:

(i) was borrowed by the borrower after 1 July 1986; and

(ii) before 2 July 1986, the borrower was not under a contractual obligation to borrow;

(b) the interest is paid in respect of a loan resulting from a roll-over , after 1 July 1986, of the whole or a part of a previous loan; or

(c) the interest is paid in respect of a period of extension of the period for which loan money was lent, being an extension occurring after 1 July 1986.