24 Jan 1212 Present legal obligation for the purposes of s109Y(2) of Division 7A - TD 2012/D1
On 11 January 2012, the ATO released for public comment by 17 February 2012 draft Taxation Determination TD 2012/D1 entitled "Income tax: when is income tax of a private company a 'present legal obligation' for the purposes of the distributable surplus calculation under subsection 109Y(2) of Division 7A of Part III of the Income Tax Assessment Act 1936?"
As a result of the decision in FCT v H  FCAFC 128; 2010 ATC 20-218 (the H case) the ATO has changed its view since Taxation Determination TD 2008/28 issued. Accordingly, TD 2008/28 is withdrawn with effect from 11 January 2012.
Further, Addendum TD 2007/28A1 has been issued amending TD 2007/28, entitled "Income tax: what is a 'present legal obligation' of a private company for the purposes of subsection 109Y(2) of Division 7A of Part III of the Income Tax Assessment Act 1936?"