If we have signed a Div 7a to repay a UPE amount and if we are unable to make the minimum re-payment, what is the next treatment ?
192 views
192 views4 replies
4 replies
192 views
4 replies
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
The shortfall in the minimum payment = unfranked dividend.
All replies
The shortfall in the minimum payment = unfranked dividend.
So that means each year if we are unable to make the minimum repayment, entire minimum repayment = unfranked dividend. right ?
So because of this ,there is no direct benefit to the trust right ? Since the external shareholders would receive the deemed dividends, the trust (borrower) is not directly benefiting, and the underlying debt owed by the trust remains unresolved isn't it ?
(as the repayment of the UPE (now treated as a loan) is not being satisfied)
Could you please further explain about this ?
Featured articles
20 June 2024 · 3 min read time
6 Feb 2026 · 4 min read time
24 Aug 2025 · 3 min read time