Document ID: chunk:federal_register_of_legislation:F2015L00068:front:0:p55
Version: federal_register_of_legislation:F2015L00068
Segment Type: other
Provision Reference: 
Character Range: 140354–142963

salary earner) who is:
 (i) an attributable stakeholder of the company or trust; or
 (ii) an associate, within the meaning of paragraph 52ZQ (1) (e), (h), (i) or (j) of the Act, of an attributable stakeholder of the company or trust; and
 (b) the amount paid is an allowable deduction of a kind mentioned in paragraph 52ZZZO (1) (a) of the Act; and
 (c) the amount paid exceeds an amount that represents reasonable remuneration for the wage or salary earner having regard to:
 (i) the period to which the amount paid relates; and
 (ii) the work performed by the wage or salary earner during that period; and
 (iii) the relevant qualifications or skills of the wage or salary earner; and
 (iv) remuneration paid to individuals, with comparable qualifications or skills, performing work comparable to that performed by the wage or salary earner; and
 (v) other relevant circumstances affecting the employment of the wage or salary earner.

 (3) The amount by which the amount paid, referred to in paragraph (1) (a) or (2) (a), exceeds the reasonable remuneration referred to in paragraph (1) (c) or (2) (c), is an ineligible part of the relevant allowable deduction.

7 Ineligible part of amount of interest on borrowings

 (1) For subsection 52ZZO (5) of the Act, this section applies if:
 (a) a company or a trust borrows money for the purposes of carrying on a business; and
 (b) the interest payable on the money borrowed is an allowable deduction of a kind mentioned in paragraph 52ZZO (1) (a) of the Act; and
 (c) the interest paid exceeds an amount that represents a reasonable rate of interest on the money borrowed having regard to:
 (i) the terms and conditions of the loan; and
 (ii) standard commercial interest rates at the time that the loan was made; and
 (iii) the kind of business carried on, or the way in which assessable income is gained or produced by the business.

 (2) For subsection 52ZZZO (5) of the Act, this section applies if:
 (a) an entity that carries on a primary production enterprise borrows money for the purposes of carrying on a business; and
 (b) the interest payable on the money borrowed is an allowable deduction of a kind mentioned in paragraph 52ZZZO (1) (a) of the Act; and
 (c) the interest paid exceeds an amount that represents a reasonable rate of interest on the money borrowed having regard to:
 (i) the terms and conditions of the loan; and
 (ii) standard commercial interest rates at the time that the loan was made; and
 (iii) the kind of business carried on, or the way in which assessable income is gained or produced by the business.

 (3) The amount by