Mistakes Were Made: Tips & Traps for Managing Division 7A

Dodge common & overlooked errors when dealing with Div 7A, including the distributable surplus, UPEs, and administering loans.

In this session, we cover:

• Purpose and context of Division 7A

• Loans

  • Loans from private companies - s 109D

  • Complying loan agreements - s 109N

  • TD 2022/11 – Unpaid Present Entitlements (UPEs)

  • FCT v Bendel

  • Subdivision EA, Subdivision EB, Section 100A

  • Minimum Yearly Repayments

• Payments

  • Payments by private companies - s 109C

• Debt forgiveness

  • Debt forgiveness by private companies - s 109F

• Distributable surplus

  • Calculation

  • Not opting out of loan agreement when there is no distributable surplus

• Integrity measures for Division 7A

  • Some repayments not counted - s 109R

  • Interposed entity rules

Date recorded: 5 March 2025