Pt 3-6 inserted by No 48 of 2002.
Div 207 inserted by No 48 of 2002.
Subdiv 207-F inserted by No 48 of 2002.
S 207-160 substituted for s 207-160, 207-165 and 207-170 by No 83 of 2004, s 3 and Sch 10 item 15, applicable to events that occur on or after 1 July 2002, subject to the rules on the application of Part 3-6 of the Income Tax Assessment Act 1997 set out in the Income Tax (Transitional Provisions) Act 1997. S 207-160 formerly read:
Interest payments - distributions that flow indirectly to a beneficiary of a trust
207-160(1) For the purposes of this Subdivision, a *franked distribution is treated as an interest payment if:
(a) it *flows indirectly to an entity as beneficiary of a trust; and
(b) the entity's interest in the trust:
(i) was acquired, or was acquired for a period that was extended, at or after the commencing time; or
(ii) was acquired as part of a *financing arrangement for the entity (including an arrangement extending to an earlier arrangement) entered into at or after the commencing time; and
(c) having regard to the matters in subsection (2), the distribution could reasonably be regarded as equivalent to the payment of interest on a loan.
207-160(2) A *distribution that *flows indirectly to a beneficiary of a trust can reasonably be regarded as equivalent to the payment of interest on a loan if:
(a) an amount is included in the assessable income of the entity, for the income year in which the distribution is made, that is attributable to the distribution; and
(b) having regard to the following matters, the amount could reasonably be regarded as equivalent to the payment of interest on a loan:
(i) the way in which the amount was calculated;
(ii) the conditions applying to the inclusion of the amount;
(iii) any other relevant matters.
207-160(3) The commencing time, for the purposes of subsection (1), is 7.30 pm by legal time in the Australian Capital Territory on 13 May 1997.
S 207-160 inserted by No 48 of 2002.