Introduction Overview Chapter 2: Matters which are distributions Section 1020: Transfers of assets or liabilities treated as distributions
3016.This section treats a company as making a distribution, and describes how to calculate the amount of the distribution, if assets or liabilities are transferred by a company to its members or vice versa (paragraph G in section 1000). It is based on section 209(4) of ICTA.
3017.The value of the benefit to the member is determined, and is then compared with the amount of any new consideration. If the amount given by the member is less than the value provided to the member, a distribution arises equal to the difference.
3018.This section is subject to the exceptions in section 1021.