Shareholder Loans

The Tax legislation includes tax implications for shareholders of private companies, if the company advances money to the shareholders or their associates, unless this advance is repaid or a loan agreement is put in place to repay such advances.

If you have a private company and have withdrawn funds from the company (other than salaries or wages) please contact us to discuss options for mitigating the tax imposed on such advances.

If you have been advanced funds in a previous year and chosen to put the advance under a loan agreement, there will be minimum loan repayments that need to be paid prior to 30 June.  Please ensure these repayments are made, noting that payment can made by transferring the money back to the company or by declaring dividends or salaries to the shareholder.  If you are unsure as to what option best suits your circumstances, please contact us.