Document ID: chunk:federal_register_of_legislation:C2025C00014:section:109zb
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 109ZB
Character Range: 1004010–1005229

109ZB  Amount treated as dividend is not a fringe benefit
 (1) This Division applies to a loan of an amount to an entity by a private company, even if the loan is made:
 (a) to the entity in its capacity as an employee (as defined in the Fringe Benefits Tax Assessment Act 1986) or an associate of such an employee; or
 (b) in respect of the employment of an employee (as defined in that Act).
Note: This helps ensure that a loan is not a fringe benefit for the purposes of that Act.
 (2) This Division applies to a private company's forgiveness of a debt owed by an entity to the private company, even if:
 (a) the entity owed the debt in its capacity as an employee (as defined in the Fringe Benefits Tax Assessment Act 1986) or an associate of such an employee; or
 (b) the forgiveness occurs in respect of the employment of an employee (as defined in that Act).
Note: This helps ensure that the forgiveness of a debt is not a fringe benefit for the purposes of that Act.
 (3) However, this Division does not apply to a payment made to a shareholder, or an associate of a shareholder, in their capacity as an employee (as defined in the Fringe Benefits Tax Assessment Act 1986) or an associate of such an employee.