Division 7A loan repayments: Part 1
Source: Taxation In Australia Journal Article
Published Date: 1 Oct 2020
Almost all minimum annual repayments under complying Div 7A loan agreements are made without transferring money. They are typically made by way of set-off against a dividend declared by the company, or purportedly made via a round-robin of payments. Part 1 of this article addresses the requirements to make a legally effective repayment by way of set-off. Where a repayment is not effective, the minimum annual repayment has not in fact been made, resulting in a deemed dividend.
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- Published By: David Montani
- Published On:1 Oct 2020
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