Financial Position 1 Assets Interest Bearing Loan Receivable Amount Gross amounts loaned or advanced for which an interest component is being charged. Inform the field of the total of gross amounts loaned or advanced to an international related party or parties for which an interest component is being charged. The loans and advances to be shown here include all amounts borrowed between a taxpayer and the related parties. Assets Loans And Receivables Action Code Code to describe the period in which the loans were made to shareholders and their associates. Different rules apply to different periods. Inform the relevant field with an appropriate code at Information statement- Financial and other information- Loans to shareholders and their associates in respect to the loans. A - All loans were made on or after 4 December 1997. B - All loans were made before 4 December 1997 M - Some loans were made before 4 December 1997 and some loans were made on or after 4 December 1997. or leave blank. Under Division 7A of Part III of the ITAA 1936, loans by a private company to a shareholder or associates of a shareholder - unless they come within specified exclusions - are treated as assessable dividends to the extent of the distributable surplus including realised and unrealised profit. Advances or loans to shareholders or associates may represent a distribution of profits and may be assessed to the recipient as unfranked dividends. A loan made in the income year by a private company to a shareholder (or associate of a shareholder) may be repaid or put on a commercial footing, before the earlier of the due date for lodgment or the date of lodgment of the private company?s income tax return for the year in which the loan is made, in order to prevent the loan from being treated as a deemed dividend. Assets Loans And Receivables Interest Free Amount Gross amounts loaned or advanced for which no interest component is being charge Inform the field of the total of gross amounts borrowed or advances received from an international related party or parties for which an interest component is being charged. The terms 'loans' and 'advances' are intended to be applied broadly. All the opening balances from all borrowed amount or received advances to be shown here. Equity Shareholder Funds Amount The amount of the company's share capital Inform the relevant field with the amount of shareholders' funds. This label is the net shareholders? funds as per the accounting records. The amount at label 'Total assets' less the amount at label ?Total liabilities? equals the amount shown at this label . If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, inform in this label the relevant amount as at the end of the latest non-membership period. This amount may be negative. Liabilities Commercial Debt Forgiveness Amount The net amount of commercial debts owed by the company that were forgiven during the income year ? see Division 245 of Schedule 2C to the ITAA 1936. Broadly, a debt is a commercial debt if any part of the interest payable on the debt is or would be an allowable deduction. A debt is forgiven if the company?s obligation to pay the debt is released or waived or otherwise extinguished. Inform the relevant field with the amount of commercial debt forgiveness. The net amount of commercial debts forgiven must be applied to reduce the company?s deductible revenue losses, net capital losses, certain undeducted revenue or capital expenditure and the cost base of certain CGT assets, in that order. Calculate the net forgiven amount as follows: 1. Determine the notional value of the debt. In the general case, this is the lesser of -the value of the debt at the time of forgiveness (assuming the company was solvent at that time and the time the debt was incurred), and - the value of the debt at the time of forgiveness (assuming solvency as above and no changes in market variables) plus any amounts that are allowable as deductions as a result of the debt forgiveness and that are attributable to market movements that occurred while the debt was held. Special rules apply in calculating the notional value of non-recourse debt and in respect of debt parking circumstances. 2. Calculate the gross forgiven amount of the debt by deducting from the notional value of the debt any amount of consideration provided in respect of the forgiveness. This consideration normally is the sum of the amounts of money the company is required to pay in respect of the forgiveness or, if property is required to be given, the market value of the property. Special rules apply in determining the consideration given for the forgiveness if a debt is forgiven in exchange for shares, if there are debt parking circumstances, or if money or property is applied for the benefit or at the direction of the creditor - see sections 245-65 and 245-70 of Schedule 2C to the ITAA 1936. Liabilities Debt Total Amount The amount of the average total debt of the company for the income year. Inform the relevant field with the amount of total debt. Calculate the average total debt by adding the opening and closing balances of the total debt of the company for the income year, and dividing this sum by 2. The total debt of a company includes all financial instruments and arrangements that were used by the company to provide funds for their operations and investments. The instruments and arrangements that are shown in this field include all loans, securities and instruments that give rise to deductible finance expenses, which include any of the following: - interest, a payment in the nature of interest, or a payment in substitution for interest - payments made for assignment(s) of the right to interest - a discount on a security in relation to a finance arrangement - an amount that is taken under a tax law to be an amount of interest in respect of a lease, a hire purchase arrangement or any other financial instrument specified by that law - any application or processing fee in respect of a finance arrangement - any finance expense in respect of a repurchase agreement or securities lending arrangement - any other form of yield associated with a finance arrangement - any such amount that, instead of being paid to a party to the arrangement, is dealt with in any way on behalf of that party.