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 2   Other amendments

Fringe Benefits Tax Assessment Act 1986

32   Subsection 136(1) (at the end of the definition of fringe benefit )

Add:

(s) a loan (within the meaning of section 109D of the Income Tax Assessment Act 1936), if:

(i) a dividend is not taken to be paid under that section in relation to the loan, but would be if section 109N of that Act were disregarded; or

(ii) an amount is not included, as if it were a dividend, in the assessable income of an entity under section 109XB of that Act in relation to the loan, but would be if section 109N of that Act were disregarded.