Section 460: Loan treated as made by close company
1408.This section extends the scope of sections 455 to 459 to catch loans or advances made by certain companies which are controlled by other companies. It is based on section 422(1) to (3) and (6) of ICTA.
1409.Subsection (1) states when the section applies.
1410.Subsection (2) prescribes the consequences if the company (C) making the loan or advance is controlled by a close company.
1411.Subsection (3) prescribes the consequences if C is not controlled by a close company but a close company subsequently acquires control of it.
1412.Subsections (2) and (3) operate in relation to section 459, because the references in section 422(1) and (2) of ICTA to section 419 of that Act pick up section 419(5) of that Act.
1413.Subsection (4) deals with the case in which two or more close companies control C.
1414.Subsections (5) and (6) are signposts.
1415.Subsection (7) extends the circumstances in which a company is deemed to make a loan.