Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 7A - Distributions to entities connected with a private company  

Subdivision D - Payments and loans that are not treated as dividends  

SECTION 109P  

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 dividend under section 109E .