• Concessional treatment for UPEs (between 16 December 2009 and 30 June 2010)

    It is generally considered appropriate that the trust's lodgment day for the year in which the UPE arose is the appropriate date by which a trustee needs to take action to avoid potential tax consequences under Division 7A. The Commissioner granted a concession in relation to UPEs that came into existence between 16 December 2009 and 30 June 2010 in recognition of the fact that PS LA 2010/4 was published on 14 October 2010 and that some taxpayers who wished to avoid having the UPEs being taken to be a loan for Division 7A purposes may not have sufficient time to put appropriate arrangements in place before the trust's 2010 lodgment day.

      Last modified: 22 Jun 2011QC 24445