What if the minimum repayment is not made in an income year?
- It is only the shortfall in payment that will be considered as a deemed dividend under Division 7A.
- The ATO has discretion to disregard any Division 7A outcomes if the failure to make the minimum payment was:
- due to circumstances beyond the control of the parties; and
- the parties would suffer undue hardship resulting from the deemed dividend.
- The shareholder may also be given more time to pay the shortfall amount.
- You can use our Phone a Lawyer service for a preliminary legal consultation if you think you may need legal advice.
Read some more FAQS from our Company Tax section