Director loan rules
If i want to take a directors loan (for personal use, mortgage offset etc) from my company, i have a few questions about how they work
- if it is repaid within the financial year (so as not to be deemed a div 7a dividend), does a formal written contract need to be made? or can money just be transferred back and forth between bank accounts? this would just be a one off, i do not plan to reborrow it in the next financial year so will not violate 109r.
- if the company tax returns are done by a tax agent and are usually lodged in may of the following financial year, can the loan be continued without a complying loan agreement up until that date? which is almost 11 additional months after the end of the relevant financial year.
- my understanding is if its repaid before the lodgment day, then it can be interest free. would this instead attract some kind of fringe benefits tax?
EDIT: if these questions are too specific (my bad), i guess as a more generic question, can fbt apply to an interest free directors loan repaid within the financial year?