Understanding private loans

摘要

Now that another financial year has passed and most businesses are preparing 2003 records to submit to their accountants, it's a good idea to carry out some balance sheet 'house-keeping1. In particular, private companies need to ensure that any debitloan balances to shareholders and their associates meet the specific requirements of Division 7 A of the Income Tax Assessment Act. If the balance sheet shows that you owe your company money, particular care is needed. Division 7 A generally applies toamounts paid, lent or forgiven by private companies on or after December 4, 1997.