Skip to main content
shopping_cart

Your shopping cart is empty

Division 7A and complex structures

Published on 01 Oct 13 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE

TR 2010/3 and PS LA 2010/4 consider the circumstances in which a private company with an unpaid present entitlement (UPE) to an amount from an associated trust estate makes a loan to that trust within the meaning of Div 7A of Pt III of the Income Tax Assessment Act 1936. This article examines the ruling and practice statement, and a recent decision of the Administrative Appeals Tribunal which suggests that compliance with the ruling and the practice statement is mandatory. The author considers that the ruling and practice statement, and Div 7A itself, can never be ignored in any commercial enterprise structure, from the most basic to the most complex.

The article outlines the proper approach to UPEs in this context, and also considers typical scenarios in which Div 7A applies, other than a UPE scenario. Finally, the article examines the Commissioner’s discretion in s 109RB.

Author profile:

Arthur ATHANASIOU

Click here to expand/collapse more articles by Arthur ATHANASIOU.
 
Copyright Statement