What happens under subdivision EA if a loan is repaid?
If a loan is repaid before the earlier of the due date for lodgment and date of lodgment of the trust’s tax return for the income year in which the loan is made, the loan will not be treated as a dividend. However, a repayment will not be counted if at the time it is made there is an intention to obtain a loan from the trust of an amount similar to or larger than the repayment.
