Private ruling: Division 7A - Loans to shareholder
Published: January 2013

Ruling: The ruling concerned the following: | Does section 109M of the Income Tax Assessment Act 1936 (ITAA 1936) apply to: | · loans made by the private company to the shareholder; and | · loans made by the private company to the Executors of the Estate of the shareholder? | · Does section 109N of the ITAA 1936 apply to the loan made by the private company to the shareholder prior to the shareholder's death? | Does section 109N of the ITAA 1936 apply to loans made by the private company to the Executors of the Estate of the shareholder? | Decision | The Commissioner ruled that: 1. No. Section 109M of the ITAA 1936 does not apply to: | · loans made by the private company to the shareholder; and | · loans made by the private company to the Executors of the Estate of the shareholder. | 1. Yes. Section 109N of the ITAA 1936 does apply to the loan made by the private company to the shareholder prior to the shareholder's death. | 2. No. Section 109N of the ITAA 1936 does not apply to the loans made by the private company to the Executors of the Estate of the shareholder.




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