Income Tax Assessment Act 1936
PART III
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LIABILITY TO TAXATION
Division 7A
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Distributions to entities connected with a private company
Subdivision D
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Payments and loans that are not treated as dividends
SECTION 109M
109M
LOANS MADE IN THE ORDINARY COURSE OF BUSINESS ON ARM'S LENGTH TERMS NOT TREATED AS DIVIDENDS
A private company is not taken under section 109D to pay a dividend because of a loan made:
(a) in the ordinary course of the private company's business; and
(b) on the usual terms on which the private company makes similar loans to parties at arm's length.
View history note
Hide history noteA private company is not taken under section 109D to pay a dividend because of a loan made:
(a) in the ordinary course of the private company's business; and
(b) on the usual terms on which the private company makes similar loans to parties at arm's length.
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