05 Feb 10 Submission on Division 7A exposure draft amendmentsOn 1 February 2010, the Taxation Institute lodged a submission with Treasury in response to the amendments to Div 7A contained in the exposure draft of Tax Laws Amendment (2010 Measures No 1) Bill 2010.
Generally, the Taxation Institute supports the intent of the proposed amendments and recognises the need to address integrity issues. However, the Taxation Institute has some real concerns regarding:
- Multiple taxation of benefits not actually provided;
- Uncertainty caused by excessive reliance on the formation of opinions by the Commissioner of Taxation;
- The commencement and application of the proposed legislation;
- Fairness and equity concerns arising from the different taxation valuation methodologies applied to shareholders compared to employees; and
- Potential denial of entitlement to the Small Business and General Business Tax Break.