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Division 7A and UPEs - The Final Practice Statement At Work

Published on 28 Oct 2010 | Took place at Swissotel, Sydney, NSW

Taxation Ruling TR2010/3 released in June 2010 proved to be very controversial. The draft Practice Statement released at the same time sought to put some practical flesh on the Ruling’s bones. The final version of the Practice Statement, PS LA 2010/4 provides fresh guidance on the options available to address the issues in the Practice Statement and in particular on corrective action using section 109RB. The author of the Practice Statement, Joanne Casburn provided an intimate insight to the Australian Taxation Offices approach to this difficult topic.

This event focused on a practical approach to the coverage of the Practice Statement including:

  • how to distinguish between “section two loans” and “section three loans”
  • how sub-trusts are to be given legal form
  • does each UPE require a unique sub-trust?
  • what are the consequences when a section two or three loan cannot be avoided?
  • pursuing the self-corrective options until 31 December 2011.”
This event was also run in Western Australia on the 17th of November.

Please note Joanne Casburn also presented at The latest terrain for Div 7A and Unpaid Present Entitlements in South Australia on the 3rd of November - her presentation can be downloaded there.

Individual sessions

Division 7A & UPEs - The final practice statement at work

Author(s):  Ken SCHURGOTT This paper covers:

  • the legal issues
  • section three loans and sub-trusts
  • the examples
  • safety in the ruling
  • what is the Commissioner is wrong?
Materials from this session: