Div 7A or deemed dividend payments may be familiar to you if you’re the shareholder or associate of a private company. It generally applies to treat a benefit provided by a private company to the shareholder or associate as a deemed dividend, which is then taxed at the recipients’ marginal tax rates. The government has now proposed to make changes to Div 7A after a review found the rules may be too complex and place an unnecessary administrative burden on taxpayers.
If you’re unsure, we can help you with possible transitional measures and plan for the future.
