Skip to main content

Your shopping cart is empty

Unpaid Present Entitlements - A New Approach to Taxing Trust Distributions

Published on 11 Feb 2010 | Took place at Swissotel Sydney, Sydney , NSW

Just before Christmas, the Tax Office released a very controversial draft ruling on the tax treatment of unpaid present entitlements (UPE). The draft ruling raises exceptionally complex trust and tax law issues which will have hard practical consequences for trustees, beneficiaries and their advisers. The draft ruling is intended to have both retrospective and prospective application depending on what technical issues are seen to be involved. This event identified the issues addressed by the draft ruling, considered the basis of the Tax Office’s position and provided guidance on practical responses to this new approach.

Individual sessions

Draft taxation ruling TR 2009/D8 - Sense or nonsense?

Author(s):  Ken SCHURGOTT This paper covers:

  • general operation of Division 7A
  • the historical understanding of the operation of Subdivision EA of Division 7A
  • the technical basis of the ATO's new approach
  • the retrospective and prospective application
  • the financial consequences of the draft ruling applying
  • the virtual elimination of Subdivision EA
  • what practical approaches should be adopted in response
  • is a legislative fix needed?
Materials from this session: