• Division 7A calculator and decision tool

    About the tool

    The Division 7A calculator and decision tool has two main components:

    • Decision tool

    This component will ask you a series of questions to help you determine whether a direct transaction by a private company to a shareholder or their associate will be deemed a dividend.

    • Calculator

    This component will:

    • calculate the minimum yearly repayment required on a loan to avoid a deemed dividend arising under Division 7A
    • calculate the amount of the loan not repaid by the end of an income year.

    Information you will need

    To calculate the minimum yearly repayment you will need to know:

    • the income year in which the loan was made
    • the original amount of the loan or the amount of the loan not repaid by the end of the previous year of income
    • the actual term of the loan, and
    • date and amount of any repayments attributable to that loan.

    The tool will not cater for situations where:

    • there are indirect transactions through one or more interposed entities
    • the shareholder or shareholder’s associate is a company, trust or partnership (i.e. the shareholder or shareholder’s associate is not a ‘natural person’)
    • a private company is presently entitled to income of a trust estate that has not been paid and there has been a loan, payment or debt forgiven by the trustee of the trust estate to a shareholder or shareholder’s associate of the private company, or
    • the private company uses a substituted accounting period.

    Next step:

    See also:

    Last modified: 14 Jan 2016QC 21036