2006

Loans are Seldom What they Seem

Source: Victoria

Published Date: 18 Jul 2006

 
Loans are seldom what they seem. Clients see loans as part and parcel of everyday transactions through their businesses. Lawyers treat loans as being something that arises between a debtor and creditor. The Accountant's view differs yet again. Recent ATO emphasis on the forgiveness of pre-Division 7A loans also adds to the confusion.

Loans, whether debit or credit balances, need to be understood not only from a legal viewpoint but also an accounting viewpoint in order to ensure that financial statements that are prepared are correct and accurate and can be relied upon. Are you certain that the financial statements you prepare or rely upon are correct? Are receivables or payables truly loans? Unless financial statements are correctly prepared then Division 7A problems are almost certain to arise. Each "loan' for Division 7A purposes needs to be identified and properly dealt with. Each transaction with a related entity needs to be reviewed and classified to determine whether it attracts Division 7A or another special taxing provision.

Loans: an accountant's view

Author(s): Craig Mccormick

Loans: a technical view

Author(s): Michael Bearman CTA
Materials from this session:

Loans: taxation

Author(s): Chris Wookey CTA , Ian Dunne

Details

  • Published On:18 Jul 2006
  • Took place at:Hawthorn Receptions, Hawthorn

The material is copyright. Apart any fair dealing for the purpose of private study,

research critisism or review, as permitted under the copyright Act, no part may be rerpoduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

This material is copyright. Apart from any fair dealing for the purpose of private study., research, critisism or review, as permitted under teh copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opininons are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

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