Do You Know if You Withdraw Money From Your COMPANY Bank Account and Didn’t Pay It Back Timely, It Can Trigger Div 7A Loan Implications?

Few things to consider:

1. Avoid paying private expenses from a company bank account

2. Repay the amount to company by the lodgement due date of the company tax return

3. Create a commercial Div 7A loan agreement so that the loan is not treated as unfranked dividend

4. Declare franked dividends to meet minimum repayment requirement, before end of financial year

5. The current benchmark interest rate for Div 7A loan is 8.27% per annum

Contact TAX RIZZ 👩‍💻👩‍💻 to know more and guide you through complex Div 7A implications at E: admin@taxrizz.com.au; Ph: (03) 8789 9786