INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
This section applies to interest in respect of a loan where:
(a) the loan was raised outside Australia;
(b) if the loan was raised by the issue of bearer debentures, the debentures were issued outside Australia by a company, the loan was raised in a currency other than the currency of Australia and the interest is or was paid outside Australia in a currency other than the currency of Australia; and
(c) the Commissioner has issued a certificate under section 128H in respect of the loan.
View history note
Hide history noteTax is not payable, and shall be deemed not to have been payable, in accordance with this Division in respect of interest to which this section applies.
128G(3) [Interest under contract entered into post-19 May 1983]This section does not apply to interest paid on or after the date of commencement of this subsection in respect of a loan raised in pursuance of a contractual obligation entered into on or after 20 May 1983.
This section does not apply to interest paid after the date of commencement of this subsection in respect of a loan raised pursuant to a contractual obligation entered into before 20 May 1983 to the extent to which:
(a) the interest is paid in respect of loan money that:
(i) was borrowed by the borrower after 1 July 1986; and
(ii) before 2 July 1986, the borrower was not under a contractual obligation to borrow;
(b) the interest is paid in respect of a loan resulting from a roll-over , after 1 July 1986, of the whole or a part of a previous loan; or
(c) the interest is paid in respect of a period of extension of the period for which loan money was lent, being an extension occurring after 1 July 1986.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
