Ralox Pty Ltd Ralox is a standalone private company and has a distributable surplus of $ million at June

Ralox lodged its tax return for the income year ended June on September the due date is

December During the income year ended June Ralox entered into the following transactions:

$ interestfree undocumented loan to Adam a shareholder that was repaid in August

$ undocumented loan to Julie a shareholder that was repaid in October The loan had an interest rate

of and a term of months.

$ interestfree undocumented loan to Fred an employee who is not a shareholder who used his loan to pay

for a holiday in Greece.

$ interestfree undocumented loan to Dorax Pty Ltd another private company which is an associate of Ralox.

Requirement: Determine whether there is a deemed dividend under Division A of the Income Tax Assessment Act for the

income year ended June for each transaction in items to If there is a deemed dividend, calculate the amount of that deemed dividend.

Answer rating: 100% (QA)

Answer To determine whether there is a deemed dividend under Division 7A of the Income Tax Assessmen... View the full answer