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A private company will take out a merger loan for one year of income if the company makes one or more loans to the shareholder or associated enterprise during the year and to each loan (called a “constituting loan”): when a shareholder or his partner repays a merged loan from a private company that is less than the minimum annual repayment required. and they convince the Commissioner that the minimum annual repayment has not been achieved due to circumstances beyond their control (and that they would suffer unreasonable hardship if the loan were treated as a dividend), the private company is not required to pay a dividend. The loan amount remaining at the end of the previous income year (d.b of the year ending June 30, 2015) is $50,430 (see conclusion of Example 7). For both types of loan agreements, the legislation sets a minimum repayment of the loan amount and interest to be paid each financial year. . . .