Income tax (Cth) – Assessable income – Distributions to entities connected with private company – Loans treated as dividends under s 109D of Income Tax Assessment Act 1936 (Cth) ("ITAA 1936") – Where deed of settlement of discretionary trust required amounts set aside for any beneficiary to be held on separate trust – Where trustee made resolutions to set aside amounts of net income for corporate beneficiary – Where corporate beneficiary had unpaid present entitlements – Whether resolutions to set aside amounts effected distributions – Whether amounts set aside sufficiently certain for creation of separate trusts – Whether relationship of debtor and creditor arose between trustee and corporate beneficiary – Whether unpaid present entitlements were loans for purposes of s 109D(3) of ITAA 1936.
Words and phrases – "admission of indebtedness", "advance of money", "corporate beneficiary", "debtor/creditor relationship", "deemed dividend", "discretionary object", "discretionary trust", "distribution", "financial accommodation", "in substance effects a loan of money", "loan", "loan of money", "making a loan", "net income", "obligation of repayment", "obligation to repay", "pending payment", "private company beneficiary", "repay", "same amount", "separate trust", "set aside", "time to pay", "unconditional duty to pay", "unpaid present entitlement".
Income Tax Assessment Act 1936 (Cth), ss 44(1), 95, 97, 109C, 109D, 109E, 109F, 109XA, 109XB, 109ZD.
Income Tax Assessment Act 1997 (Cth), ss 6‑25, 104-55, 960‑100(1).