• What is the amount of the dividend?

    The amount of the dividend is the lesser of the amount of the loan or the distributable surplus of the private company.

    See the fact sheet Division 7A - distributable surplus for more information on how to calculate the distributable surplus of the private company.

    Example 9

    The same facts as in example 8 and Tony Pty Ltd has a distributable surplus of $50,000. The amount of the dividend is the lesser of the amount of the loan ($70,000) and the distributable surplus of Tony Pty Ltd ($50,000). As $50,000 is the lesser of these amounts, the amount to be included in the assessable income of Anthony as an unfranked dividend for the 2004 year is $50,000.

      Last modified: 18 Aug 2010QC 17634