A Division 7A dividend in the Australian tax system is an amount treated by the Australian Tax Office (ATO) as an assessable dividend of a shareholder of a private company that attempts to make a tax-free distributions of profits to the shareholder, or an associate of the shareholder.
Division 7A applies to payments, loans and debts forgiven on or after 4 December 1997. However, it may also apply to loans in place before this date, where the amount of the loan is increased or its term extended on or after 4 December 1997. Division 7A applies to debts forgiven on or after 4 December 1997, regardless of when the debt was created.
Read more about Division 7A Dividend: Objective, Amounts Caught, Limitations, Later Dividends, Who Is An Associate?, Qualifying Commercial Loans
Famous quotes containing the word division:
“The division between the useful arts and the fine arts must not be understood in too absolute a manner. In the humblest work of the craftsmen, if art is there, there is a concern for beauty, through a kind of indirect repercussion that the requirements of the creativity of the spirit exercise upon the production of an object to serve human needs.”
—Jacques Maritain (1882–1973)