Document ID: chunk:federal_register_of_legislation:C2004A00975:clause:1_3:p10
Version: federal_register_of_legislation:C2004A00975
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 10/11)
Character Range: 111550–114210

regarded as equivalent to the payment of interest on a loan.

 (2) A *distribution that *flows indirectly to a beneficiary of a trust can reasonably be regarded as equivalent to the payment of interest on a loan if:
 (a) an amount is included in the assessable income of the entity, for the income year in which the distribution is made, that is attributable to the distribution; and
 (b) having regard to the following matters, the amount could reasonably be regarded as equivalent to the payment of interest on a loan:
 (i) the way in which the amount was calculated;
 (ii) the conditions applying to the inclusion of the amount;
 (iii) any other relevant matters.

 (3) The commencing time, for the purposes of subsection (1), is 7.30 pm by legal time in the Australian Capital Territory on 13 May 1997.

207‑165  Interest payments—distributions that flow indirectly to the trustee of a trust

 (1) For the purposes of this Subdivision, a *franked distribution is treated as an interest payment if:
 (a) it *flows indirectly to an entity under subsection 207‑35(4) as trustee of a trust; and
 (b) the interest in the trust in respect of which the trustee is liable to be assessed:
 (i) was acquired, or was acquired for a period that was extended, at or after the commencing time; or
 (ii) was acquired as part of a *financing arrangement for the entity (including an arrangement extending to an earlier arrangement) entered into at or after the commencing time; and
 (c) having regard to the matters in subsection (2), the distribution could reasonably be regarded as equivalent to the payment of interest on a loan.

 (2) A *distribution that *flows indirectly to the trustee of a trust can reasonably be regarded as equivalent to the payment of interest on a loan if:
 (a) the trustee is liable to be assessed under Division 6 of Part III of the Income Tax Assessment Act 1936, for the income year in which the distribution is made, on an amount that is attributable to the distribution; and
 (b) having regard to the following matters, the amount could reasonably be regarded as equivalent to the payment of interest on a loan:
 (i) the way in which the amount was calculated;
 (ii) the conditions applying to the inclusion of the amount;
 (iii) any other relevant matters.

 (3) The commencing time, for the purposes of subsection (1), is 7.30 pm by legal time in the Australian Capital Territory on 13 May 1997.

207‑170  Interest payments—distributions that flow indirectly to a partner in a partnership

 (1) For the purposes of this Subdivision, a *franked distribution is treated as an interest payment if:
 (a) it *flows indirectly to an entity