The Division 7A rules are one of the most complex and easily misunderstood areas of tax law and the tax implications for clients that fall foul of the rules can be profound.
This session will provide an overview of the current law in this complex area, together with the details of how to avoid Division 7A by putting in place a complying loan agreement. In addition, the session will highlight the ATO’s changing stance on unpaid present entitlements, noting the steps that now need to be taken to sidestep Division 7A.
During the session, you will be guided through the maze, including:
- Overview of the existing Division 7A rules
- Alert Overview of the recent Bendel case – what does this mean for UPE’s?
- What needs to be done to put in place a complying loan agreement to avoid Division 7A, including documentation and timing requirements?
- ATO’s treatment of unpaid present entitlements arising before 30 June 2022
- When will post 30 June 2022 unpaid present entitlements become subject to Division 7A? Overview of the ATO’s latest position, highlighting key differences to previous draft guidelines and possible impact on “bucket companies”
- Sub-trusts: do they still have a role in Division 7A planning?
- New ATO warning highlights arrangements where a holding company is interposed to access company profits tax free, with clear Division 7A exposure
- Where are we up to with the proposed government changes to Division 7A, including new simplified loan rules? Will these changes ever take effect? What should clients do?
Participants will gain an up to date understanding of proposed and actual changes to the Division 7A rules, how they will impact clients, what advice needs to be given and what action needs to be taken. Material reflects and clarifies ATO guidance and case law.
Tax Agents, accountants, lawyers and other professionals who act for private companies and associated entities (including individuals and trusts) with actual or potential Division 7A issues.
You will also be provided with:
- A PDF of the presenter’s PowerPoint
- Access to the subsequent e-Learning including transcript, CPD Quiz and webinar recording which can be viewed multiple times
- Any Supporting Documentation
- A CPD Certificate if you attend more than 80% of the live session