Income Tax Tax Policy

Div 7A and UPEs – The Assistant Treasurer Chickens out

I will write more about the Board of Tax report on Division 7A tonight, but I just sent this to the Assistant Treasurer…

I refer to your press release of today.

We have been waiting for you to release the Board of Tax report on Division 7A since 2012 as we knew it would recommend fixing the absolute mess made by the Commissioner’s position from December 2009 that Unpaid Present Entitlements to corporate beneficiaries are subject to Division 7A.

And the Board of Tax report perfectly solves the problems we have had to survive through since 2009.

We expected the reason the Government has been sitting on the report since November 2014 was the Government were preparing to implement the Boards recommendations to fix this mess…

But you have just kicked these recommendations into another review. This is not appropriate. It is five and a half years of the industry saying the Commissioner’s position on unpaid present entitlements to corporate beneficiaries is inappropriate and after a through review concluding the same (Recommendation 9 in the Boards review would fix all the problems) you just kick the problem further down the road.

This is the classic government “review” leading to reconsideration in another “review”.

Kevin Rudd would be very proud of you Josh!

By Ken Mansell

As a stay at home Dad most of the week this is my way of pretending I am still the tax counsel of ASX and SEC listed companies, working at big 4 firms, working at the Federal Treasury, on the Henry Review and at Parliament House for the previous government.

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