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:
“Between married persons, the cement of friendship is by the laws supposed so strong as to abolish all division of possessions: and has often, in reality, the force ascribed to it.
”
—David Hume (1711–1776)