Remembering Division 7A loans

Not another Division 7A paper… Yes, but keep reading as I believe we have become lazy in how we manage our private company loans, and I think you might need to tighten up your processes to avoid a risk of large dividends arising.

Section 1 is just a reminder on what can be loans under Div 7A (so feel free to skip it), but sections 2 & 3 and where you might find your journals showing repayments of these loans each year may not actually reflect the fact that no repayment has been made. 

Advertisement

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: