05/06/2026
The ATO reminds shareholders of private companies that understanding how Division 7A of the tax legislation applies is crucial to avoiding costly tax consequences when accessing the company’s money or other benefits.
When Division 7A applies, the recipient of a payment, loan or other benefit can be deemed to have been paid an unfranked dividend that will be included in their assessable income.
Read more of this blog from Nathan here https://www.tbaraccounting.com.au/ato-warns-of-common-division-7a-errors/