Division 7A continues to challenge advisers working with private groups. Despite the long-standing reform agenda, the law remains complex and fertile ground for both compliance errors and technical disputes. This session explores the operational complexity of Division 7A, focussing on how to future-proof compliance strategies in light of ATO focus areas and judicial developments, while also and highlighting provisions that can trip up or assist practitioners including:
- Section 109R – Understanding how Division 7A might disregard repayments
- Section 109T – How deeming provisions that catch indirect payments or loans—critical in structures involving layered trusts or corporate entities
- Section 109ZC – Practical use of franked or unfranked dividends to reduce Division 7A loans and the documentation and timing rules that apply
- Section 109RB – How is the Commissioner currently using his discretion to provide relief for genuine mistakes or oversights; and
- Post-Bendel uncertainty – Where are we at? What does Bendel mean for trust distributions to corporate beneficiaries?