Division 7A was enacted largely to overcome apparent deficiencies in the operation of section 108 of the Assessment Act. Section 108 treats as a dividend any amount paid or credited by a private company to a shareholder (or associate of a shareholder), to the extent that the amount so paid or credited represents a distribution of profits. However, the effectiveness of section 108 was often uncertain, due to problems in determining when moneys were paid or credited, whether genuine profits existed, and the intentions of the company and shareholder at the time of the distribution (ie whether a payment or distribution should be treated as a loan). Division 7A addressed those problems in the manner set out in this paper.
Miscellaneous
2000
Are your privates caught?: avoiding and solving Division 7A problems
Source: South Australia
Published Date: 25 Jul 2000
Individual Session
Avoiding and Solving Division 7A Problems
Author(s):
Andrew Shaw CTA
,
Terry Lewis
Materials from this
session:
Details
- Published By: Terry Lewis, Andrew Shaw CTA
- Published On:25 Jul 2000
- Event Name:Avoiding and Solving Division 7A Problems
- Session Name:Are your privates caught?: avoiding and solving Division 7A problems
- Read Time:30+ minutes
- Took place at:Adelaide Festival Centre Banquet Room, Adelaide
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Tags
Miscellaneous
2000
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