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:
“Major [William] McKinley visited me. He is on a stumping tour.... I criticized the bloody-shirt course of the canvass. It seems to me to be bad “politics,” and of no use.... It is a stale issue. An increasing number of people are interested in good relations with the South.... Two ways are open to succeed in the South: 1. A division of the white voters. 2. Education of the ignorant. Bloody-shirt utterances prevent division.”
—Rutherford Birchard Hayes (1822–1893)