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End of attention
Payments made on or after 23 June 2009 to a CGT concession stakeholder who is an employee, to satisfy the retirement exemption requirements, are no longer deemed to be in consequence of termination of employment for the purposes of section 109 of the ITAA 1936 (about excessive payments to shareholders, directors and associates being deemed to be dividends).
Division 7A of the ITAA 1936 also no longer applies to treat such payments made by a company or trust as dividends.
Payments made on or after 23 June 2009 to satisfy the retirement exemption requirements are not treated as a dividend nor a frankable distribution provided you are:
- a company making a payment to
- an interposed entity receiving a payment and passing that payment on.
See Interposed entities receiving or making payments on or after 23 June 2009.