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Courses/Accounting & Tax/Accounting

Division 7a Loans and Dividends

Loans or Dividend by Private Company

Created byRhys Lyons
4.5
(10 reviews)
IntermediateUpdated Dec 15, 2020
Division 7a Loans and Dividends

About This Course

This course introduces students to Division 7a of the Income-tax Assessment Act (1936) which has significant effects on private companies operating within Australia wishing to take funds or assets from their business.

The course focuses on how the division operates and how and to who it is applicable, it also includes the tax consequences of the division and discusses some potential options to limit the effects on private companies and their shareholders.

The topics covered in the course are:

  1. What is division 7a and why was it introduced
  2. What will be treated as a dividend
  3. Important sections of the division (excluding exceptions)
  4. Exceptions to Division 7a Activating,
  5. General Rules applicable to dividends declared under division 7a
  6. Characteristics and Withholding Tax
  7. Fringe Benefits
  8. Loans Under Division 7a compared to a deemed dividend
  9. Loans vs Payments
  10. Distributable Surplus
  11. Complying loans
  12. Example
  13. Things to avoid when making a loan under division 7a
  14. Non-compliance
  15. Approaches to division 7a (standard vs alternative)

Your Instructor

Rhys Lyons
Rhys Lyons
menu_book1 courses
star10 reviews

Experienced in Tax law and litigation, corporate governance including M&A in a publicly listed international company

Credit Information

What Students Are Saying

4.5
Student's Choice
10 reviews

Frequently Asked Questions

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