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

3   After subsection 109D(4)

Insert:

Payment converted to loan before lodgment day

(4A) If:

(a) a private company makes a payment to an entity at a time in a year of income; and

(b) the payment is converted to a loan before the end of the private company’s lodgment day for the year of income;

for the purposes of this Division, treat the events mentioned in paragraphs (a) and (b) as the private company making a loan to the entity at the time mentioned in paragraph (a).