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  • Amount assessable as a dividend

    Where Subdivision EA applies, the amount of the dividend assessable to the shareholder or associate cannot be more than the UPE owing to the private company.

    The dividend amount will be the lesser of either:

    • the amount of the payment, the loan or the debt forgiven
    • the amount of the company's present entitlement that remains unpaid at the relevant time less any previous benefit to which Division 7A or former section 109UB applied.

    This dividend amount is assessable to the shareholder or associate as if the payment, loan or debt forgiveness was done by a private company and the shareholder or associate had been a shareholder of that company.

    However, the dividend amount is subject to the distributable surplus of the private company that is presently entitled to the income of the trust.

    See also:

      Last modified: 13 Dec 2017QC 54068