The new section 109XB - what you need to know
Published on 11 Nov 2004
| Took place at All Seasons Premier Menzies, Sydney, and Crowne Plaza, Parramatta, NSW
This seminar series was held in:
- Sydney on 2 November 2004
- Parramatta on 11 November 2004.
These days a family trust with a corporate
beneficiary is a fairly common structure. The
former Section 109UB extended the operation of Division 7A to certain loans by a family trust
where a corporate beneficiary had an unpaid
present entitlement. At the suggestion of the
Board of Taxation Section 109UB was amended to overcome deficiencies. The new Section 109XB extends the operation of Division 7A even further than the former Section 109UB. It is important to note that the changes apply retrospectively. A good understanding of the new Section 109XB is vital for such practitioners whose clients use this family trust structure.