Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128a:p3
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128A (pt 3/4)
Character Range: 1213618–1216124

omitted; and
 (b) paragraph (a) of the definition of security in that subsection included a reference to debt interests.
 (2) For the purposes of this Division, interest or a royalty shall be deemed to have been paid by a person to another person although it is not actually paid over to the other person but is reinvested, accumulated, capitalized, carried to any reserve, sinking fund or insurance fund however designated, or otherwise dealt with on behalf of the other person or as the other person directs.
 (3) For the purposes of this Division, a beneficiary who is presently entitled to a dividend, to interest or to a royalty included in the income of a trust estate shall be deemed to have derived income consisting of that dividend, interest or royalty at the time when he or she became so entitled.
 (4) In section 260, income tax or tax includes withholding tax.
 (5) For the purposes of this Division:
 (a) the borrowing of moneys by a company by means of the issue of a number of debentures or debt interests in one borrowing operation shall be deemed to be the raising of a loan;
 (b) subject to paragraph (a), each receipt of moneys by a borrower under a contract under which moneys are to be, or may be, advanced by way of loan shall be deemed to be the raising of a loan; and
 (c) the moneys received by the raising of a loan, less the expenses of borrowing, shall be deemed to be the loan moneys in respect of the loan.
 (6) A reference in this Division to beneficial interests in relation to an entity shall be read:
 (a) in the case of an entity being a company or the partners in a partnership—as a reference to beneficial interests in respect of the capital of, and in respect of any profits or income of, the company or partnership;
 (b) in the case of an entity being persons carrying on a joint venture—as a reference to beneficial interests in respect of the enterprise; and
 (c) in the case of an entity being the trustees of a trust—as a reference to beneficial interests under the trust.
 (7) A reference in this Division to the use of moneys for the purposes of an enterprise shall be read as not including use of those moneys in the course of carrying on an enterprise:
 (a) by way of providing capital for another enterprise; or
 (b) by way of the making of loans.
 (9) For the purposes of this Division:
 (a) a reference to particular loan moneys (including the reference in paragraph (b)) includes a reference to moneys that, in the opinion of the Commissioner, represent