Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

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

Subdivision E - Payments and loans through interposed entities  

SECTION 109V   AMOUNT OF PRIVATE COMPANY'S PAYMENT TO TARGET ENTITY THROUGH ONE OR MORE INTERPOSED ENTITIES  

109V(1)   Private company taken to pay if target entity is paid.  

If the target entity is paid an amount by the interposed entity, this Division operates as if the private company had paid the amount (if any) determined by the Commissioner to the target entity when the interposed entity paid the target entity.

109V(2)   Determining the amount of the private company's payment.  

In determining the amount of the payment the private company is taken to have made, the Commissioner must take account of:

(a) the amount the interposed entity paid the target entity; and

(b) how much (if any) of that amount the Commissioner believes represented consideration payable to the target entity by the private company or any of the interposed entities for anything (assuming that the consideration payable equals that for similar transactions at arm's length).