INCOME TAX ASSESSMENT ACT 1936 - SECT 109J Payments discharging pecuniary obligations not treated as dividends

INCOME TAX ASSESSMENT ACT 1936 - SECT 109J

    A private company is not taken under section   109C to pay a dividend because of the payment of an amount, to the extent that the payment:

  (a)   discharges an obligation of the private company to pay money to the entity; and

  (b)   is not more than would have been required to discharge the obligation had the private company and entity been dealing with each other at arm's length.