Published on 04 Mar 10
by NATIONAL DIVISION, THE TAX INSTITUTE
Since its introduction, Division 7A of the ITAA36 has undergone several amendments. On each occasion the scope of the provisions has potentially been expanded. Changes announced in the last Federal Budget have now brought many more dealings with private companies within the operation of the provisions.
This paper covers:
- expansion of the definition of "payment" - just how wide is it?
- how to manage family companies holding assets used by associates in the future
- implications of the recent technical amendments
- the impact of the Commissioner's discretions in practice
- undrawn present entitlements - just how do trusts fit in?