Division 7A: some things you may not know
Published Date: 17 Mar 2025
This article considers some of the subtleties within Div 7A of the Income Tax Assessment Act 1936 (Cth) (ITAA36). Division 7A is an area of the tax law that private clients and practitioners in the private client space will generally have an awareness of. In particular, the core concept that loans, payments and forgiveness from a private company to a shareholder or their associate can have adverse tax implications if not appropriately managed. However, issues such as the application of ss 109R and 109T ITAA36, the question of whether Div 7A or FBT has priority, and whether a deemed dividend is actually such a bad thing are all important and can have a material impact on the tax outcomes that arise for the particular situation.
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- Published By: Todd Want CTA
- Published On:17 Mar 2025
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