What is a loan and when does it happen?
A client sees a loan as an everyday transaction through a business.
A lawyer says a loan results in a debtor / creditor relationship.
The accountant says a loan is whatever you want it to be!
Recent changes to the tax law and the ATO's announcement on corrective action make it imperative to know exactly when a transaction is properly a loan, a payment or a fiction.
In this seminar, a loan for accounting purposes was discussed and contrasted with the legal concept of a loan. The taxation implications were also analysed in detail. The ATO's Division 7A practice statement was also discussed in the context of corrective action.