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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


 
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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