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When is a loan a loan? presentation

Published on 27 Nov 07 by SOUTH AUSTRALIAN DIVISION, THE TAX INSTITUTE

What is a loan and when does it happen?

A client sees a loan as an everyday transaction through a business.

The accountant says a loan is whatever you want it to be!

Recent changes to the tax law and the ATO’s announcement on corrective action make it imperative to know exactly when a transaction is properly a loan, a payment or a fiction.

In this presentation, the accounting treatment of a loan is discussed as well as the taxation implications:

  • when does a loan arise?
  • recognising loans and distinguishing them from contributed capital
  • documenting and substantiating loans
  • role of an accountant in creating loans - where does that debit entry go?
  • recent Division 7A changes
  • issues in forgiving loans
  • strategies for solving Division 7A problems as set out in PS 2007/20
  • debt equity rules, SME carve outs
  • loans as traditional securities - tax issues.

Author profile:

David Zweck CTA
David is a Director of MacKenzie Strategic Accountants and has over 20 years experience in providing accounting, taxation and business advisory services to his clients who are privately owned businesses and high net worth individuals. David enjoys working closely with his clients assisting them in resolving their problems and planning for the future. David works across a number of industries including wholesale distribution, property and professional services and he also assists his clients in developing retirement and succession strategies. Current at 30 June 2014
 
Individual sessions

When is a loan a loan?

Author(s):  David ZWECK

Materials from this session:

November 2007 tax update

Author(s):  Katherine CHMIELEWSKI

Materials from this session:

Further details about this event:

 

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