17 Jan 08 Div 7A: failure to pay trade credit - TD 2008/1This final Taxation Determination was issued on 16 January 2008. It had previously been released in draft form as TD 2007/D17: see 2007 TAXVINE No 41 (24) (19 October 2007). Its full title is "Income tax: if a private company provides trade credit to a shareholder (or their associate) on the usual terms it gives to parties at arm's length, will a failure by the shareholder (or their associate) to repay the amount within the agreed payment term prevent s 109M of ITAA 1936 from applying?" The answer given is No.
For a copy of TD 2008/1, go here