Will Division 7A catch your company loans this year?
If your company has lent money to you or an associate, or a trust owes a company beneficiary an unpaid distribution, Division 7A can deem it a taxable dividend unless it's handled correctly before lodgment — and the trustee resolution has to be signed by 30 June. We check the exposure.
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What this scan finds
Shareholder and associate loans that need a complying s109N loan agreement
Minimum yearly repayments, and whether they've actually been met
Unpaid present entitlements (UPEs) to corporate beneficiaries and their 7A treatment
The 30 June trustee resolution and the s100A “reimbursement agreement” red zones
Family trust distribution tax (FTDT) and the benchmark interest position
Who it's for
Anyone running a company and/or a discretionary trust with loans to shareholders, associates, or corporate beneficiaries.
What you get
A structured report on each loan and UPE, the Division 7A treatment, the minimum-repayment position, and the 30 June actions — to action with your accountant before lodgment.
How it works
1 · Order
Book this scan and tell us a little about your business. No payment is taken upfront.
2 · We dig
We run the scan against current ATO and regulator rules, verifying any volatile figures live.
3 · Your report
You get a clear, client-ready report with the items to raise with your tax agent or accountant.
Questions
What is a deemed dividend?
If a private company provides a loan, payment or forgiven debt to a shareholder or associate and it isn't put on complying terms, Division 7A can treat it as if the company paid an unfranked dividend — taxable in the recipient's hands.
What is a UPE?
An unpaid present entitlement is an amount a trust has made a beneficiary entitled to but hasn't yet paid. Where the beneficiary is a company, the ATO can treat the UPE as a loan back to the trust and bring Division 7A into play.
Why does 30 June matter?
The trustee generally has to resolve how trust income is distributed before the end of the income year. Miss it and the default beneficiary — or the trustee at the top rate — can be assessed instead.
Will Division 7A catch your company loans this year?