Published on 07 Nov 13
by NATIONAL DIVISION, THE TAX INSTITUTE
Although the government has proposed reforming the trust provisions, the start date for those rules is not until 1 July 2014. This paper considers a number of difficult issues that are currently arising in practice with the recent amendmentsto Div 115 and 207 of the ITAA97, and the interplay between Div 6 and the deemed dividend rules in Div 7A of the ITAA36.
This paper covers, among other things :
- streaming in practice – what practical difficulties have arisen?
- practical difficulties with interposed trusts in complex structures and Div 7A
- Division 7A and Part IVA – specific versus general anti-avoidance rules – can trusts be caught in the middle?
- review of Div 7A and trust UPEs from an accountant’s perspective.