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  • Advice under development – trust specific issues

    We are developing advice and guidance on the following trust specific issues.

    [3942] Section 100A reimbursement agreements

    Title
    Draft Taxation Ruling
    Income tax: section 100A: reimbursement agreements – purpose and ordinary dealing exclusions

    Purpose
    This draft Ruling will set out the Commissioner’s preliminary views on the exclusions from a ‘reimbursement agreement’ for:

    • agreements not entered into with a purpose of eliminating or reducing someone’s income tax, and
    • agreements entered into in the course of ordinary family or commercial dealings.

    Expected completion
    February 2022

    Comments
    Targeted consultation on this issue has been undertaken and feedback has been considered. The draft Ruling is expected to be released in conjunction with item [4033].

    Contact
    Justin Dearness, Tax Counsel Network
    Phone: (07) 3213 5745
    Justin.Dearness@ato.gov.au

    See also

    [4033] Unpaid present entitlements of private company beneficiaries

    Title
    Draft Taxation Determination
    Income tax: Division 7A: when will an unpaid present entitlement or amount held on sub-trust become ‘any other form of financial accommodation’?

    Purpose
    This draft Determination will set out the Commissioner's proposed view on when the unpaid present entitlement of a private company beneficiary will be treated as a loan for which there can be dividend consequences under Division 7A, as that beneficiary has provided ‘any other form of financial accommodation’ to the trustee.

    Expected completion
    February 2022

    Comments
    The draft Determination will be the product of a review of existing guidance in Taxation Ruling TR 2010/3 Income tax: Division 7A loans: trust entitlements and Law Administration Practice Statement PS LA 2010/4 Division 7A: trust entitlements. To the extent that any view in this draft Determination is different to that existing guidance, the view in the draft Determination will be prospective and will apply to present entitlements created on, or after, 1 July 2022. That existing guidance will continue to apply to current arrangements.

    Contact
    Justin Dearness, Tax Counsel Network
    Phone: (07) 3213 5745
    Justin.Dearness@ato.gov.au

    Last modified: 22 Dec 2021QC 57882