How can an exercise of the Commissioner's discretion be requested?
Generally, you must apply to the Commissioner to exercise his discretion to disregard the deemed dividend or to allow the private company to choose to frank the dividend. The application would normally be in writing and include all the information necessary for the Commissioner to make a decision. There is no prescribed or standard application form.
If you have had a Division 7A deemed dividend included in your assessable income for any of the 2001-02 to 2006-07 income years, and you believe you may be eligible for exercise of the Commissioner's discretion under section 109RB, you may lodge an objection to your assessment. If necessary, you should also lodge a request for an extension of time to lodge your objection. The objection should request that the Commissioner exercise his discretion.
Any request for an exercise of the Commissioner's discretion should include sufficient information to demonstrate to the Commissioner that the failure to comply with one or more of the provisions of Division 7A was the result of an honest mistake or inadvertent omission.