Taxpayers and advisers take note: it will soon be time to pay-out UPEs or convert them to Division 7A complying loans to avoid paying deemed dividends

Background In Practice Statement 2010/4, the Commissioner set out three safe harbour investment options that taxpayers could avail themselves of to ensure an Unpaid Present Entitlement (UPE) of a company from a trust, did not attract the application of Division 7A. These options involved having [...]

September 25th, 2017|Taxation|

Corporate Tax Cuts: What Do They Mean For You?

Just over two months have passed since the Federal Government enacted the Treasury Laws Amendment (Enterprise Tax Plan) Act 2017 to reduce the corporate tax rate in Australia. The new company tax rate is 27.5% for the 2016-17 tax year for companies with aggregated annual [...]

August 2nd, 2017|Taxation|

Sham Loans

Sham Loans The Commissioner of Taxation in two recent tax cases (Millar[1] and Normandy Finance[2]) and Liquidators in BCI Finances[3] (supported by the Commissioner of Taxation), have had success in alleging certain loans were shams. This had the effect that in the tax cases, that [...]

June 1st, 2017|Taxation|