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.

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Need help with Division 7A?

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 Australia

Common 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

 

Lawyer in Profile

Andrew Wright
Andrew Wright
Partner
+61 3 9258 3362
andrew.wright@maddocks.com.au

Qualifications: LLB (Hons), BCom, University of Melbourne

Andrew is a Partner in Maddocks Tax and Structuring team. He has significant experience in advising Australian and multinational companies, high net worth individuals, accountants and financial advisers on all areas of taxation law.

Andrew regularly provides advice on:

  • structuring of businesses and transactions,
  • mergers and acquisitions,
  • sale of businesses,
  • corporate reorganisations,
  • fixed and discretionary trust deeds, and
  • international tax structuring.

His advice covers both direct and indirect tax considerations.

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