This Subdivision   sets out rules about payments and loans that are not treated as dividends.

The following sorts of payments are not treated as dividends:

•   payments of genuine debts (section   109J);

•   payments to other companies (section   109K);

•   payments that are otherwise assessable or that are specifically excluded from assessable income (section   109L).

The following sorts of loans are not treated as dividends:

•   loans to other companies (section   109K);

•   loans that are otherwise assessable (section   109L);

•   loans made in the ordinary course of business on ordinary commercial terms (section   109M);

•   loans that meet criteria for minimum interest rate and maximum term (section   109N);

•   certain loans and distributions by liquidators (section   109NA);

•   loans that are for the purpose of funding the purchase of certain ESS interests under an employee share scheme (section   109NB).

An amalgamated loan may not be treated as a dividend if the Commissioner is satisfied that doing so would cause undue hardship. (See section   109Q.)

This Subdivision   also provides for some loan repayments and interest payments to private companies to be disregarded if they are made with the intention of borrowing a similar amount from a private company later. (See section   109R.)