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Division 7A loan repayments: Part 2

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Published on 01 Nov 20 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE

In part 1 of this article, the author discussed the common practice of making the minimum annual Div 7A loan repayment by way of setting off against a dividend declared by the company. Risks, albeit low, arise where minutes documenting the resolution to declare the dividend are filed late, or the distribution statement is provided late to shareholders. In part 2, the author considers circumstances where the particular structure does not naturally provide for the creation of mutually opposing obligations for set-off between lender and borrower.

Author profile

David Montani CTA
David Montani, CTA, is National Head of Technical Tax – Private Enterprise at Grant Thornton. He has over 30 years’ experience in specialist tax advisory, and is the author of Tax Wars: The bluster, bulldust and bedlam behind Australia’s tax reform gridlock. - Current at 13 April 2026
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