Draft TR 2022/D1 and Draft PCG 2022/D1 – ATO’s well signalled s100A and Trust ‘reimbursement agreements’ guidance

Tax Month - February 2022

On Wed 23.2.2022, the ATO released its long awaiting guidance on trust reimbursement agreements, Draft TR 2022/D1. A companion product – Draft Practical Compliance Guideline PCG 2022/D1 – was also issued. See related TT article. Draft TR 2022/D1 identifies, and discusses, 4 basic requirements for s100A of the ITAA36 to apply: the “connection” requirement –…

TD 2022/D1 – Division 7A: revised ATO view on UPEs and sub-trusts

Tax Month - February 2021

On Wed 23.2.2022, the ATO released the well signalled Draft Determination TD 2022/D1 on the application of Div 7A in relation to unpaid present entitlements (UPEs) and sub-trusts (see related TT article). Specifically, the Draft sets out the ATO’s revised draft views that a private company beneficiary provides “financial accommodation” to the trustee or a shareholder (a…