Tax Laws Amendment (2009 Measures No. 2) Act 2009 (42 of 2009)

Schedule 2   CGT concessions for small business

Part 2   Other amendments

Income Tax Assessment Act 1997

38   Subsection 152-325(9)

Repeal the subsection, substitute:

Payments are not dividends or frankable distributions

(9) Subsection (10) applies if:

(a) a company makes a payment to comply with subsection (1) to:

(i) a *CGT concession stakeholder; or

(ii) an interposed entity, in relation to a CGT concession stakeholder; or

(b) both of the following apply:

(i) an interposed entity receives a payment (whether directly or indirectly through one or more interposed entities) that a company or trust makes to comply with subsection (1), in relation to a CGT concession stakeholder;

(ii) the interposed entity passes on the payment to the CGT concession stakeholder or another interposed entity.

(10) This Act applies to the payment, to the extent that it is less than or equal to the amount mentioned in subsection (3) for the stakeholder, as if:

(a) it were not a *dividend; and

(b) it were not a *frankable distribution.

(11) Subsection (10) applies in relation to the payment despite section 109 and Division 7A of Part III of the Income Tax Assessment Act 1936.