This article is more than 24 months old and is now archived. This article has not been updated to reflect any changes to the law.
The following videos, which deal with Division 7A matters, have been developed by the ATO in response to feedback from tax professionals received during webinars that it hosted over 2016.
Division 7A may apply when payments or loans are provided by a private company to a shareholder or their associate.
The resulting videos were produced with an aim to help practitioners manage their clients' Division 7A matters.
Tax & Super AustraliaCommon mistakes
Assistant Commissioner Fiona Dillon discusses common Division 7A mistakes that can be avoided by keeping your clients' personal and company finances separate.
Payments
What a "payment" is, and how it is treated under Division 7A.
Complying loans
Assistant Commissioner Fiona Dillon discusses complying loans under Division 7A.
Commissioner's discretion
If your client makes an honest mistake or inadvertent omission related to Division 7A, you should encourage them to apply for the Commissioner's discretion.
To access the ATO's Division 7A calculator and decision tool, click here .
Source: This article was first published by Tax & Super Australia at http://taxandsupernewsroom.com.au/
More Cleardocs information on related topics
You can use Cleardocs to create a Division 7A Loan Agreement to avoid loans from a company to its shareholders or associates of shareholders being classified as dividends. You can read earlier ClearLaw articles on a range of company related topics.
Order Cleardocs company packages
- Division 7A Loan Agreement
- Company Registration
- Registered Company documents
- ABN Registration - company
- Shareholders Agreement
- Change to Sole Director Company
- Change to Constitution
- Company Name Reservation
- Public Company Limited by Guarantee
- Company Minutes & Resolutions Package
- Company Deregistration — voluntary
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+61 3 9258 3819
jack.coventry@maddocks.com.au
Qualifications: BA (Philosophy), Monash University, JD (Juris Doctor), University of Melbourne
Jack is a member of Maddocks Commercial team. He advises a range of corporate and private clients on:
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Jack acts for clients on both buy-side and sell-side and specialises in founder-owned businesses and Australian subsidiaries of multi-national companies. He works across a number of sectors including information technology, professional services, and property development and management including land lease.
Jack's structuring work includes assisting multinationals to structure Australian operations, listed companies to achieve regulatory compliance / optimisation and providing general tax structuring. He has also represented clients in tax controversies including before the General Anti-Avoidance Review Panel (GAAR Panel) and the Federal Court of Australia.
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