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Can a loan be made under a written agreement so that subdivision EA will not apply?

April 26, 2017Agreement EA loan subdivision written

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Can a loan be made under a written agreement so that subdivision EA will not apply?

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Yes, if the written loan agreement meets the requirements covered in questions 36 to 51 (Loans made under written agreements), then Division 7A will not apply in respect of the loan in the income year. The written agreement must be between the trustee and the shareholder (or shareholder’s associate).