Introduction Overview Chapter 3: Charge to tax in case of loan to participator Section 459: Loan treated as made to participator
1402.This section blocks arrangements to circumvent the charge under section 455. It treats certain loans or advances, which would otherwise be outside the scope of that section, as having been made to a relevant person. It is based on section 419(5) and (7) of ICTA.
1403.Subsection (1) states when the section applies.
1404.Subsection (2) is the main operative provision.
1405.Section 419(5) of ICTA provides for that section to apply as if the loan or advance had been made to the individual in question. Subsection (2), which is based on section 419(5), provides for sections 455 to 458 to apply. These sections include provisions which are based on section 420 of ICTA. Since section 420 of ICTA makes exceptions to section 419 of that Act, defining the scope of subsection (2) in this way does not change the law.
1406.Subsection (3) makes two exceptions to this section.
1407.Subsection (4) extends the circumstances in which a person is treated as a participator in a company.