Taxation Determination
TD 98/22A - Addendum
Income tax: under Division 7A of Part III of the Income Tax Assessment Act 1936 ('the Act'), how is the benchmark interest rate used for private company loans to shareholders or associates?
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FOI status:
may be releasedPreamble
| This Addendum forms part of the Determination but is not a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953. Taxation Rulings TR 92/1 and TR 97/16 together explain when a Determination is a public ruling and how it is binding on the Commissioner. |
ADDENDUM
This Addendum amends Taxation Determination TD 98/22 as follows:
Delete the formula for calculating the minimum yearly loan repayment and replace it with:
(Amount of the loan not repaid by the end of the previous year of income * Current year's benchmark interest rate) / remaining term of loan
1 - [1 / (1 + current year's benchmark interest rate)]
(100,000 * 0.067) / [ - [1 /(1 = 0.67]
= 24,193
Commissioner of Taxation
14 April 1999
References
ATO references:
NO 98/12257-6; 98/10779-7
ISSN 1038 - 8982