Failure to put funds on a sub-trust in time

If the trustee fails to put the funds on a sub-trust for the sole benefit of the private company beneficiary by the date specified in PS LA 2010/4, the Commissioner will consider that the private company beneficiary has provided the trust with a loan, by way of financial accommodation, to the amount of the UPE. Section 109D of Division 7A may then operate to deem the private company to have paid a dividend to the trustee of the trust.

    Last modified: 22 Jun 2011QC 24445