We previously wrote to the Treasurer on 7 April 2020 (link to submission) with our concerns in relation to current uncertainty surrounding Division 7A of the Income Tax Assessment Act 1936 (Cth). The relevant part has been extracted in the attached Appendix.
We write to you seeking certainty around potential changes to be made to Division 7A, particularly in light of the 2018-19 Budget measure entitled Tax Integrity — clarifying the operation of the Division 7A integrity rule.
The Joint Bodies consider that this is a complex area and as such this Budget measure should only be progressed after a thorough consultation process has occurred.
The Joint Bodies
(Chartered Accountants Australia and New Zealand, Corporate Tax Association, CPA Australia, Institute of Public Accountants, Law Council of Australia and The Tax Institute)
The Hon. Michael Sukkar MP