It's here! ATO releases final Practice Statement on Div 7A and UPE
On 14 October 2010, the ATO released its keenly awaited Practice Statement on Div 7A and trust entitlements, PS LA 2010/4. It is effective from 14 October 2010 and is lengthy, running to 218 paragraphs. The Commissioner said it provides practical ways on how to follow Taxation Ruling TR 2010/3, issued 2 June 2010. That ...more
ATO Compliance Focus for 2010-11: Small to medium enterprises (turnover $2m-$250m)
ATO focus areas in the SME sector for 2010-11 include: a continuing focus on private groups and the tax compliance of the individuals controlling those groups and the entities within them. The ATO says it intends to increasingly use external data to automatically detect and link private groups and the individuals controlling them; a focus ...more
Div 7A loans and trust entitlements – Taxation Ruling TR 2010/3
This Ruling, released on 2 June 2010, sets out the Commissioner’s views on when a private company with an unpaid present entitlement (UPE) from an associated trust is considered to have made a loan to the trust for Div 7A purposes. Broadly, the Ruling provides that the company will be considered to have made a ...more
Div 7A: will the nightmare ever end?
Probably not! Or at least not soon! Division 7A has been causing practitioners headaches since (and even before) the day it was enacted. The provisions have been amended several times and we’ve had rulings on them. Most recently, a controversial ATO ruling (Draft TR 2009/D8) threatens more problems. It gives the ATO’s views on the ...more
Div 7A applies to "payments by direction" – FCT v Rozman
The Federal Court has confirmed that the deemed dividend provisions can apply where a payment is made by a debtor of a company to a shareholder at the direction of the company – and that, therefore, a payment for the purposes of the provisions does not preclude “payment by direction”: FCT v Rozman [2010] FCA ...more
New draft taxation ruling TR 2009D8 affecting Division 7A interests/
Some issues of concern re ATO Draft Ruling on Div 7A and UPE – by Tony Greco, Senior Tax Adviser, NIA The ATO’s release in late December 2009 of Draft Taxation Ruling TR 2009/D8 concerning Div 7A and the treatment of unpaid entitlements of a corporate beneficiary of a trust has certainly generated much interest. ...more
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