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:
“For in the division of the nations of the whole earth he set a ruler over every people; but Israel is the Lord’s portion: whom, being his firstborn, he nourisheth with discipline, and giving him the light of his love doth not forsake him. Therefore all their works are as the sun before him, and his eyes are continually upon their ways.”
—Apocrypha. Ecclesiasticus 17:17-9.