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:
“Affection, indulgence, and humor alike are powerless against the instinct of children to rebel. It is essential to their minds and their wills as exercise is to their bodies. If they have no reasons, they will invent them, like nations bound on war. It is hard to imagine families limp enough always to be at peace. Wherever there is character there will be conflict. The best that children and parents can hope for is that the wounds of their conflict may not be too deep or too lasting.”
—New York State Division of Youth Newsletter (20th century)