Case Clinic Webinar: The $500k Division 7A Mistake: When ‘Repayments’ Trigger Tax Trouble

Case Clinic webinars are a new practical webinar format from TEN designed to work through a detailed real-world scenario from start to finish — examining not just the law, but how issues actually arise in practice. Rather than a traditional technical webinar focused on broad legal principles and a supporting paper, a Case Clinic follows the facts as they unfold, highlighting the decisions, assumptions, timing issues and practical traps that can change the outcome. These sessions are highly practical, discussion-driven and designed to sharpen professional judgment in complex areas.

To mark the launch of this new format, TEN is offering Case Clinic webinars at a special introductory price of $165.

What starts as a routine advance from a company to a related entity quickly unravels into a Division 7A problem — not because the loan wasn’t repaid, but because of how it was repaid. This Case Clinic follows a real-world scenario where circular cash flows, timing issues and misunderstood assumptions trigger unexpected tax consequences. As the facts unfold, you’ll identify the risks, pinpoint where things go wrong, and consider what could have been done differently. It covers:

• A private company advances $500,000 to a related trust with (or without) proper documentation: when does Division 7A first arise?
• The client attempts to “repay” the loan before year end, but where has the money actually come from?
• Identifying a looped loan: when repayments are funded by new borrowings from the same company (or group)
• Section 109R in practice: when is a repayment disregarded, and why?
• The timing trap: how year-end movements can create (or avoid) a deemed dividend
• What the ATO looks for: common red flags in audits and reviews
• Consequences of getting it wrong: deemed dividends, penalties and flow-on effects
• Can the position be salvaged? Options to unwind or mitigate the damage
   

Please note that a technical paper will not be available for this case clinic webinar. In lieu of a written paper, attendees will have access to the presenter's detailed PowerPoint slides, which will serve as a comprehensive reference for the session.