• How does Division 7A apply to a closely-held corporate limited partnership?

    From 1 July 2009, Division 7A applies to closely-held corporate limited partnerships in the same way that it applies to private companies.

    If you are a partner or associate of a partner in a closely-held corporate limited partnership which directly or indirectly (for example, through an interposed entity) makes a payment or loan to you, or forgives a debt that you owe, the closely-held corporate limited partnership may be taken under Division 7A to pay you a dividend. You may need to include this amount in your tax return as an unfranked dividend. In certain circumstances, the dividend may be franked.

    For information on the meaning of 'associate', refer to the fact sheet Division 7A - overview.

      Last modified: 15 Jul 2010QC 23184