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Assets use caught by Division 7A.

Publication date: 10 Jun 10 | Source: IN THE BLACK

Issue: June 2010

Pages: pp. 56-57

The ATO has turned to unpaid present entitlements with its treatment of payment and a two-tier trust structure. The ATO has made it clear that its focus on UPEs has been triggered by the discovery of the practice of a trustee allowing private use of lifestyle assets where there is a UPE. The government's response was to make two Division 7A amendments, which apply from 1 July and are now live issues for many private company shareholders and their advisers. An effective strategy needs to be in place, and executed, by 30 June 2010; it is too late to deal with the issues when preparing the income tax return.

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Author profile

Andrew O'Bryan CTA
Andrew is a Partner at Hall & Wilcox Lawyers and provides advice on the application of a wide range of taxation. He has substantial knowledge of taxation and commercial practice and advises his clients on income tax, capital gains tax, tax audits and reviews, fringe benefits tax, business structuring and transactions, liquidations and reconstructions, superannuation, retirement planning, business succession, estate planning, and philanthropy. Andrew advises accounting and legal firms on their clients’ affairs. He also draws clients from industry, commerce and high-net-worth private family groups. One of his main interests is advising private business owners on the transition of management and control of family businesses to the next generation. Andrew has been recognised in the The Best Lawyers in Australia in Tax Law every year since 2014 and is a leading tax lawyer in Victoria in Doyle's Guide to the Australian Legal Profession. - Current at 12 November 2019
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