The long-awaited Determination on the treatment of UPEs and sub-trusts under the deemed dividend rules in Div 7A has been finalised. It outlines two situations where a private company will be considered to provide financial accommodation to a trustee or a shareholder, and therefore a loan for Div 7A purposes. The Determination will apply to any trust entitlements arising on or after 1 July 2022. For trust entitlements arising before 1 July 2022, taxpayers can rely on the previous Ruling and Practice Statement which have been withdrawn.
Click to read our article: ATO’s new approach to UPE’s and sub-trusts. (1.70 MB PDF)