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Tax - Deductions & Issues, Cashflow Sonia Gibson Tax - Deductions & Issues, Cashflow Sonia Gibson

Pitfall Of Transferring Surplus Business Cash To A Personal Offset Account

It has been a common practice of business owners, operating through companies, to transfer surplus cash into personal mortgage offset accounts. Then at the end of a financial year transferring the cash back into the business to avoid the consequences of Division 7A (i.e. the funds being treated as an unfranked dividend in the hands of the recipient), before transferring it all back to the offset account in July.

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