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  • Draft guidance products impacting trusts released

    We’ve released a suite of draft public advice and guidance (PAG) products relating to Section 100A reimbursement agreements and Division 7A of the Income Tax Assessment Act 1936.

    The suite is open for consultation and clarifies our position on:

    • reimbursement agreements under section 100A, and identifies arrangements that will not attract our compliance resources
    • when ‘financial accommodation’ arises under Division 7A
    • arrangements of concern where taxpayers are using adult-child beneficiaries of family trusts to avoid tax on income.

    Consultation on the draft PAG is open until 8 April to allow you time to comment on the draft products and consider any impacts on your existing and future arrangements.

    If you are involved with a trust, we encourage you to read the draft PAG, review your arrangements, and contact us or your registered tax professional if you need further clarification or guidance.

    We understand trust laws and governance can be complicated, and we are committed to providing the right advice and information to help you correctly comply with your tax obligations.

    See also

    • Draft Taxation Ruling TR 2022/D1 Income tax: section 100A reimbursement agreements
    • Draft Taxation Determination TD 2022/D1 Income tax: Division 7A: when will an unpaid present entitlement or amount held on sub-trust become the provision of ‘financial accommodation’?
    • Draft Practical Compliance Guideline PCG 2022/D1 Section 100A reimbursement agreements – ATO compliance approach
    • Taxpayer Alert TA 2022/1 Trusts: parents benefitting from the trust entitlements of their children over 18 years of age.
    Last modified: 23 Feb 2022QC 68014