Published on 23 Apr 99
by NEW SOUTH WALES DIVISION, THE TAX INSTITUTE
Prior to 4 June 1987 s108 only applied when a private company made a payment to or for the benefit of a shareholder. When considering whether very old loans should be cleaned up this limitation on ATO power should be born in mind. Despite introduction of Div 7A loans to shareholders (or their associates) which are employment related also remain subject to the FBT legislation. This produces an onerous and confusiimg situation in which such loans must comply with two differing sets of legislative standards. Despite the introduction of Div 7A s108 remains operative as an alternative weapon for the ATO.
Les Szekely BA LLM FTIA first worked as a solicitor and then taught commercial and revenue law at the
University of NSW and then at Sydney University. Les joined Horwath in 1984 as a Senior Tax Manager
and became a Tax Partner in 1987. Following the recent merger between Horwath and Deloitte, Les
became Director of Taxation, Deloitte Growth Solutions. For nearly 20 years his professional career has
been dedicated entirely to tax consulting for cross border transactions, business reorganisations,
mergers and acquisitions. Les has been extensively published in CCH, Rydges, IBFD and Information
Australia on both domestic and international issues.
Current at 5 February 2009
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