Tax Laws Amendment (2004 Measures No. 7) Act 2005 (41 of 2005)

Schedule 9   Non-commercial loans

Part 2   Amendments commencing on Royal Assent

Income Tax Assessment Act 1936

4   After subsection 109D(1)

Insert:

Amount of dividend

(1AA) The amount of the dividend taken under subsection (1) to have been paid is the amount of the loan that has not been repaid before the lodgment day for the current year, subject to section 109Y.

Note: Section 109Y limits the total amount of dividends taken to have been paid by a private company under this Division to the company's distributable surplus.