Can remedial action be taken to avoid Division 7A consequences?
- Yes. A company can take remedial action to avoid a payment made to a shareholder being considered as a deemed dividend under Division 7A.
- The Company and the shareholder may enter into a loan agreement that complies with Section 109N of the Income Tax Assessment Act 1936.
- You could use our Fixed Fee Quote service to call for tenders from lawyers to help you draft your required loan agreements.
Read some more FAQS from our Company Tax section