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Published on 28 Sep 05
by QUEENSLAND DIVISION, THE TAX INSTITUTE
Loans from trusts to related parties can have significant taxation implications. They need to be monitored and reviewed in terms of the potential application of Division 7A, the debt forgiveness provisions and even Part IVA. Also there are a multitude of difficulties that have to be managed when trusts are varied or re-organised. This case study takes a practical look at the most significant issues to be aware of. Topics include:
Division 7A: Section 109XA-XC
traps for the unwary applying section 109 XB
debt forgiveness and debt /equity provisions
interest deductibility issues
what is a resettlement?
must a resettlement create an adverse capital gain result?
recent cases and Commissioner's statements.
Clifford Hughes FTIA works for Clifford Hughes & Associates.
Clifford specialises in providing revenue, structuring and succession advice to high
wealth individuals and small to medium enterprises. He acts as a specialist consultant to
legal and accounting practices in QLD, NSW & Victoria on these issues, including advice
in respect of CGT, GST, demergers, stamp duty and international trust structures. Current at 14 August 2008
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
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