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Join Date: Aug 2012
Location: Elwood, Melbourne
Thanked 1 Time in 1 Post
| | Re: Company to company loans
It's always a good idea to document these things but in the real world it rarely happens.
There is a tax provision you need to watch out for which can deem loans from companies to be dividends in some situations however it doesn't apply directly to company - company loans, though can still apply indirectly.
If your lending company has retained profits and the loan isn't going to be repaid < 30/6/13 you should talk to your accountant just to make sure you don't accidentally trigger something tax-wise you didn't mean to.
Hope this helps.