Published on 11 Oct 12
by VICTORIAN DIVISION, THE TAX INSTITUTE
When the revenue tail starts to wag the commercial dog, strange outcomes and potential dangers are inevitable. This paper looks at some of the issues to be addressed for SME clients who want to extract money from their companies without being bitten.
Issues covered include:
- debit loans (Div 7A)
- credit loans (Div 974 debt–equity)
- making UPEs and how to get the money out
- share buybacks
- capital reductions
- dividends (including streaming and classes of shares)
- excessive remuneration and s109
- sections 45A and 45B
Tony Riordan, CTA, is a Tax Partner at Riordans Lawyers in Melbourne, a boutique commercial law firm. He has degrees in Law and Commerce and a Masters in Taxation Law from Melbourne University. His areas of practice include SME structuring, estate planning for high wealth individuals and transaction structuring.
- Current at
23 April 2014