The Board of Taxation Thur 20.12.2012, released a discussion paper and is inviting written submissions to assist in its post-implementation review of Div 7A.
Reform options for discussion include:
- whether there is a need to clarify the circumstances in which a UPE should be treated as a Div 7A loan and, if so, how that clarification should be provided;
- generally, whether Subdivs EA and EB of Div 7A should be amended so that they are more effective in addressing the inappropriate accessing of profits of private companies;
- specifically, whether UPEs should be treated as financial accommodation for the purposes of Div 7A and, if so, at what point in time.
COMMENTS are due by 15 February 2013.
Source: Board of Taxation media release No 43, 20 December 2012
[LTN 247, 20/12]