• What if a payment is only partly attributable to an unrealised gain?

    If a payment is only partly attributable to an unrealised gain, then only the part attributable to the unrealised gain is subject to the new rules.

    Example 10

    The same facts as example 2 except that, in addition to the $30,000 of unrealised capital profits, the trustee also declares present entitlement to realised capital profits of $50,000. A cheque is then drawn for $80,000 and delivered to Mary, instead of the $30,000 cheque. In this case, the payment of $80,000 is only partly attributable to an unrealised gain, and the amount subject to Division 7A is $30,000. Hence the amount that Mary may be taken to receive as an unfranked dividend is $30,000, subject to the distributable surplus of Marbles Pty Ltd.

      Last modified: 09 Jul 2010QC 17635