The entire debt and corporate tax payment during the term of the loan is recorded as follows: as of the 2007 income year, a deficit in the event of a minimum annual repayment of a merged loan may be considered a dividend (subject to the distributable surplus of the private company) if Terry Pty Ltd has paid $20,000 to Ann, a shareholder of Terry Pty Ltd. The money is lent to Ann on the basis that she will repay it if she can. The $20,000 is a loan from Terry Pty Ltd to Ann because it is a cash advance, and Division 7A may apply. We intuitively know that a brief rash of pain due to tearing a patch is better than removing it slowly – and painfully. This can just as well be related to the management of a Div 7A loan. Repayment of the original $10,000 loan is not a repayment within the meaning of Sections 109D. This is due to the fact that Alicia lent a similar amount to Cleary Pty Ltd and, in this case, a reasonable person would conclude that the loan was obtained to repay the initial $10,000. The Division 7A computer and decision support provide a breakdown of the interest components and the main elements of the payment. To calculate it manually, apply the reference rate corresponding to the outstanding amounts. Note that although the interest rate in the written agreement differs from the reference rate, the reference rate is used to calculate the minimum annual repayment for Division 7A purposes. On the other hand, both interest rates directly or indirectly influence the results of each component of the common approach, with the exception of the initial amount of the Div 7A loan itself.