Categories
Tax Policy

Unpaid present entitlements to corporate beneficiaries

In December 2009 the Commissioner changed his position on unpaid present entitlements to corporate beneficiaries – claiming they became Division 7A loans after a year.

I, like many people raised this with the Government and they said “wait for the final ruling”, “wait for the practice statement”, “wait for a NON EXISTANT test case” and then David “to busy stopping boats arriving in Western Sydney” Bradbury pushed the problem to the Board of Taxation.

But it looks like the new assistant Treasurer is just as prompt in making decisions…

In the press release on 8 November, the Assistant Treasurer announced that the Board of Taxation’s review of Division 7A, including the taxation of unpaid present entitlements will be delayed until 31 October 2014. So it looks like we will be waiting for 5 years after the Commissioner changed his position on unpaid present entitlements to corporate beneficiaries to get an answer as to whether the government will do anything to override this, and if it will, exactly what the government will do. 5 years… So helpful…

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