Published on 07 Sep 06
by WESTERN AUSTRALIAN DIVISION, THE TAX INSTITUTE
This paper seeks to:
provide a brief history of s 108 and Division 7A
draw upon history to help us understand the current application of both s 108 and Division 7A
consider what ‘loans’ are subject to Division 7A and the characteristics of such loans with special reference to the role of trusts and the concept of present entitlement in Division 7A
consider what is meant by distributable surplus as defined in s 109Y(2) of the Act and what help we may find in consideration of the term profit in the history of s 108 of the Act
consider the Commissioners Practice Statement PS LA 2006/2 and the treatment of statute barred loans
examine some common mistakes in the interpretation and application of Division 7A and some unanswered issues or maybe opportunities.
Syd joined Moore Stephens in 1987 after 14 years with the Australian Taxation Office. Since joining the firm he has overseen the taxation advice provided by the firm, and supervised the taxation compliance functions. Syd has a Commerce Degree from the University of Western Australia, a Graduate Diploma in Business Law from Curtin University and a Masters Degree in Taxation from the University of NSW. Current at 14 May 2008
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
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