Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1936 - SECT 109XH

Amount and timing of payment or loan through interposed entities

Amount of payment or loan

             (1)  The amount the trustee is taken under section 109XF or 109XG to have paid or lent the target entity is the amount (if any) determined by the Commissioner.

             (2)  In determining the amount of the payment or loan, the Commissioner must take account of:

                     (a)  the amount the interposed entity paid or lent the target entity; and

                     (b)  how much (if any) of that amount the Commissioner believes represented consideration payable to the target entity by:

                              (i)  the trustee; or

                             (ii)  any of the interposed entities;

                            for anything (assuming that the consideration payable equals that for similar transactions at arm's length).

             (3)  The total of the amounts determined under subsection (1) for payments and loans in relation to which section 109XB applies because of the same present entitlement mentioned in paragraph 109XA(1)(c), (2)(b) or (3)(b) must not exceed the unpaid present entitlement mentioned in subsection 109XA(4).

Timing of payment or loan

             (4)  The trustee is taken under section 109XF or 109XG to have made the payment or loan at the time the interposed entity made the payment or loan mentioned in paragraph 109XF(1)(c) or 109XG(1)(c) to the target entity.



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