Tax Laws Amendment (2005 Measures No. 5) Act 2005 (162 of 2005)

Schedule 6   Debt and equity interests

Part 1   Related party at call etc. loans

Income Tax Assessment Act 1997

2   Subsection 164-15(2)

Repeal the subsection, substitute:

(2) If paragraph 164-10(1)(c), (d) or (e) applies in relation to a particular interest in the company, there is a credit to the *non-share capital account at the change time referred to in that paragraph of an amount equal to:

(Amount received - Share capital account credit - Amount returned)

where:

amount received is the market value, when it was provided, of the consideration the company received for the issue of the interest.

amount returned is so much of the amount received as has been returned to a holder of the interest before the change time.

share capital account credit is the amount of any credit made to the company's share capital account in respect of the issue of the interest.