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.
Damian O'Connor CTA
Damian is the Managing Principal of the Melbourne based
specialist taxation firm, Tax + Law. He has more than 40 years experience in
tax and commercial and family legal issues in Melbourne and Brisbane. His
experience includes 23 years with the Australian Taxation Office and as a tax
partner of a national law firm. He is a regular presenter for The Tax Institute,
professional development providers, professional associations and
universities. Current at 01 February 2016
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