Division 7A was introduced with much fanfare and was set to revolutionise the taxation of shareholder loans and payments. In recent years it may have become a 'sleeper' - but with ever increasing scrutiny by the Commissioner, now is the time to 'wake up'. Whether the issue has been the deductability of interest or the correct taxation treatment of a loan, relevant tax law issues have needed constant attention by advisors.
This session provided a detailed review of the relevant legislation and strategies that advisors should be familiar with in constructing client advice and recommendations with respect to such transactions - balancing the views of the ATO and of the profession. Reference was also made to the Treasurer's 12 December statement foreshadowing proposed amendments to Division 7A impacting distributions from family trusts to companies.