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  • Amounts that will not be deemed to be dividends

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    • The following transactions will not result in a deemed dividend:
    • a repayment of a debt owed by a private company to a shareholder or associate, provided the amount of the debt does not exceed the amount the company would have owed if the company and shareholder or associate had been dealing with each other at arm's length
    • a loan made in the ordinary course of a private company's business on the usual terms which it applies to arm's length loans of a similar type 19
    • a payment or loan which forms part of the assessable income of the shareholder or associate by virtue of some other provision of the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997
    • a loan made during the course of winding up a company where the loan is either repaid or offset by distributions by the end of the income year following the year in which the loan is made
    • a payment or loan which has been specifically excluded from the assessable income of the shareholder or associate by virtue of an exempting provision in the Income Tax Assessment Act 1936
    • a loan made solely for the purpose of enabling the shareholder or associate to acquire shares, or rights to shares, under an employee share scheme to which Division 13A of the Income Tax Assessment Act 1936 applies
    • the forgiveness or release of a debt of a shareholder or associate under the Bankruptcy Act 1966.
    Last modified: 23 Dec 2019QC 16138