Ron Jorgensen, Partner at Rigby Cooke Lawyers |
Each month, members of The Tax Institute can access a complimentary, recently-published technical paper that provides relevant, up-to-date information on a current issue for tax professionals.
January’s paper is Division 7A structuring: the contortionist revisited by Ron Jorgensen, Partner at Rigby Cooke Lawyers.
Jorgensen explains that Division 7A of the Income Tax Assessment Act 1936 has inherent structural, interpretative, operative and administrative uncertainties.
It’s a common problem area for tax practitioners, as it is difficult to construe and apply, is often misunderstood, and results in high compliance costs and frequent, unintended breaches.
The paper discusses and assesses the risks of Div 7A loan and UPE (unpaid present entitlement) compliance management and repayment planning options, and the potential impacts of proposed Div 7A reform.
It includes:
If you’re a member of The Tax Institute, you can download the paper here, without charge. If you’re not an Institute member, a fee will apply.