When the revenue tail starts to wag the commercial dog, strange outcomes and potential dangers are inevitable. This paper looks at some of the issues to be addressed for SME clients who want to extract money from their companies without being bitten.
Issues covered include:
- debit loans (Div 7A)
- credit loans (Div 974 debt–equity)
- making UPEs and how to get the money out
- share buybacks
- capital reductions
- dividends (including streaming and classes of shares)
- excessive remuneration and s109
- sections 45A and 45B
- demergers
- liquidations.