Tax Office to Review Private Loan Arrangements

Tax Office to Review Private Loan Arrangements

Are you?	- A Taxpayer?
At a glance:	- The Tax Office has announced that they will be reviewing private loan arrangements between companies and their shareholders.
You should:	- Ensure that you are aware of the actions being taken by the Tax Office. - Contact us if you require any clarification or advice.

1.	During December the Tax Office will be issuing letters to selected taxpayers with turnover of between $2 million and $250 million.
2.	These letters include information about debit loan accounts with shareholders of the company and their associates, and provide information on Division 7A of the tax legislation and how it may apply to private company loans.
3.	The aim of these letters is to encourage taxpayers to voluntarily disclose loan arrangements they may have with private companies.
4.	Private company operators in their role as shareholders need to ensure they keep company and private expenses separate to avoid being affected by Division 7A.