Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION

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

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

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SECTION 109NB

109NB LOANS TO PURCHASE SHARES UNDER EMPLOYEE SHARE SCHEMES NOT TREATED AS DIVIDENDS

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A private company is not taken under section 109D to pay a dividend because of a loan made solely for the purpose of enabling the shareholder, or an associate of the shareholder, to acquire an ESS interest under an employee share scheme (within the meaning of the Income Tax Assessment Act 1997 ) to which:

(a) Subdivision 83A-B , and the provisions referred to in paragraphs 83A-33(1)(a) to (c), of that Act apply; or

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(aa) Subdivision 83A-B , and the provisions referred to in paragraphs 83A-35(1)(a) and (b), of that Act apply; or

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(b) Subdivision 83A-C of that Act applies.

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History

S 109NB amended by No 105 of 2015, s 3 and Sch 1 item 1, by substituting para (a) and (aa) for para (a), applicable in relation to ESS interests acquired on or after 1 July 2015. Para (a) formerly read:

(a) Subdivision 83A-B and subsections 83A-35(3) to (9) of that Act apply; or

S 109NB substituted by No 133 of 2009, s 3 and Sch 1 item 17, applicable in relation to the ESS interests mentioned in subsections 83A-5(1) and (2) of the Income Tax (Transitional Provisions) Act 1997 . S 109NB formerly read:

SECTION 109NB LOANS TO PURCHASE SHARES UNDER EMPLOYEE SHARE SCHEMES NOT TREATED AS DIVIDENDS
109NB(1)
A private company is not taken under section 109D to pay a dividend because of a loan made solely for the purpose of enabling the shareholder or an associate of the shareholder to acquire:

(a) qualifying shares or qualifying rights under an employee share scheme; or

(b) a stapled security or right to acquire a stapled security that is treated as a qualifying share or qualifying right because of Subdivision DB of Division 13A .
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History

S 109NB(1) substituted by No 56 of 2007 , s 3 and Sch 3 item 15, effective 12 April 2007. No 56 of 2007 , s 3 and Sch 3 item 39 contains the following application provision:

(1)
The amendment applies to acquisitions of stapled securities, and of rights to acquire stapled securities, on or after 1 July 2006.

(2)
In this item:
acquisition
has the same meaning as in Division 13A of Part III of the Income Tax Assessment Act 1936 .

S 109NB(1) formerly read:

109NB(1)
A private company is not taken under section 109D to pay a dividend because of a loan made solely for the purpose of enabling the shareholder or an associate of the shareholder to acquire qualifying shares or qualifying rights under an employee share scheme.

109NB(2)
Expressions used in this section that are defined in Division 13A have the same meaning as in that Division.

S 109NB inserted by No 47 of 1998.

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