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Division 7A loan repayments: Part 2

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Published on 01 Nov 20 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE

In part 1 of this article, the author discussed the common practice of making the minimum annual Div 7A loan repayment by way of setting off against a dividend declared by the company. Risks, albeit low, arise where minutes documenting the resolution to declare the dividend are filed late, or the distribution statement is provided late to shareholders. In part 2, the author considers circumstances where the particular structure does not naturally provide for the creation of mutually opposing obligations for set-off between lender and borrower.

Author profile

David Montani CTA
David is Nexia Australia’s National Tax Director, providing tax technical and strategic support to Nexia offices across Australia. Prior to commencing this role in 2019, David had 26 years of experience in taxation and business advisory, with the last 15 years in specialist taxation consulting, leading Nexia Perth's Tax Consulting Division. Particular areas of specialty include business restructures, property transactions, Capital Gains Tax, Division 7A and business sales. David's approach is to deliver solutions-based outcomes that assist clients in making important decisions concerning their businesses. - Current at 22 October 2020
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