Commonwealth Consolidated Acts

TAX LAWS AMENDMENT (2004 MEASURES NO. 7) ACT 2005 - SCHEDULE 9

Part   1 -- Amendment commencing on 29   June 2004

Income Tax Assessment Act 1936

1   After subsection 109XC(2)

Insert:

Modified operation of section   109D

  (2A)   A loan referred to in this Subdivision that is made during a year of income of a trust estate is taken to have been fully repaid at the end of the year for the purposes of paragraph 109D(1)(b) if it is fully repaid before the earlier of the due date for lodgment and the date of lodgment of the trustee's return of income for the trust for that year of income of the trust.

2   Application of item   1

The amendment made by item   1 of this Schedule applies to loans made on or after 12   December 2002.

Part   2 -- Amendments commencing on Royal Assent

Income Tax Assessment Act 1936

3   Paragraph 109D(1)(b)

Omit "by the end of", substitute "before the lodgment day for".

4   After subsection 109D(1)

Insert:

Amount of dividend

  (1AA)   The amount of the dividend taken under subsection   (1) to have been paid is the amount of the loan that has not been repaid before the lodgment day for the current year, subject to section   109Y.

Note:   Section   109Y limits the total amount of dividends taken to have been paid by a private company under this Division to the company's distributable surplus.

5   Subsection 109D(2)

After "taken", insert "under subsection   (1A)".

6   At the end of section   109D

Add:

When is the lodgment day?

  (6)   In this Division, the lodgment day for a private company's year of income is the earlier of:

  (a)   the due date for lodgment of the private company's return of income for the year of income; and

  (b)   the date of lodgment of the private company's return of income for the year of income.

7   Paragraph 109E(3)(a)

Omit "at the end of", substitute "before the lodgment day for".

8   Subsection 109E(3)

Omit "been repaid at the end of", substitute "been repaid before the lodgment day for".

9   Subsection 109N(1)

After "if", insert ", before the lodgment day for the year of income".

10   Paragraph 109N(1)(a)

Repeal the paragraph, substitute:

  (a)   the agreement that the loan was made under is in writing; and

11   Subsections 109XC(2A), (3) and (5)

Repeal the subsections.

12   Section   109ZD

Insert:

"lodgment day" for a private company's year of income has the meaning given by subsection 109D(6).

13   Application

The amendments made by items   3 to 12 of this Schedule apply in relation to loans made in the 2004 - 2005 year of income or a later year of income.