Business Compliance Services

Taxation can be a major cost to any business. Complying with your tax responsibilities and ensuring you minimise the impact can help you to achieve your financial objectives.

Business Structure Services

Reviewing every phase of your organisation's lifecycle to achieve the desired results and maximise potential.

Business Strategy Services

Helping businesses grow, through reviewing the financial position, developing growth initiatives and identifying the areas that require attention to achieve your goals.

Tax Facts - Loans to Shareholders

Advances (or loans), including the forgiving of debts, made by a private company to a shareholder (or an associate of a shareholder) are automatically deemed to be dividends, unless they come within certain specified exclusions. The deemed dividend can only apply to the unpaid present entitlement to which the private company is entitled.

If the advances are converted to a loan before the due date of the company's income tax return, the advances will not be treated as a dividend. However, this loan must be written and have a maximum term and minimum interest rate.

There is also a requirement that the shareholder make minimum repayments on the loan. If the minimum repayments are not made, a deemed dividend will arise in relation to the shortfall.

Suite 1, 261 - 265 Blackburn Rd
Doncaster East
Vic 3109
Australia

Ph: 03 8804 4777

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