Tax Laws Amendment (2007 Measures No. 3) Act 2007 (79 of 2007)

Schedule 1   Distributions to entities connected with a private company and related issues

Part 1   Main amendments

Income Tax Assessment Act 1936

19   After subsection 109ZC(1)

Insert:

(1A) This section also sets out special rules for dealing with a dividend (also the later dividend ) distributed by a private company if:

(a) the private company distributes the later dividend to a shareholder in the company; and

(b) the shareholder applies the amount of the dividend to repay all or part of a loan:

(i) that was obtained from the private company by an associate of the shareholder; and

(ii) in relation to which a dividend was previously taken under this Division to have been paid by the private company.