Category: Uncategorized
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No Div 7A on UPEs (unpaid present entitlements) to corporate beneficiaries… the Federal Court says stop to the Commissioner!! Wow
The Federal Court just said Division 7A does NOT apply to an unpaid present entitlement to a corporate beneficiary unless there is a loan to an individual shareholder as well!!!! See Commissioner of Taxation v Bendel [2025] FCAFC 15 (19 February 2025). They write…. “Division 7A is an anti-avoidance provision directed at in substance distributions…
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POLICY IDEA – FIXING PRIVATE COMPANY DEEMED DIVIDENDS… WITH DEEMED INTEREST
Sorry but I had to much thinking time over the Christmas holidays… Many tax agents have a story of a new client where, sitting on the balance sheet of a private company in the group, there are loan accounts to shareholders or their associates. While this in itself is not a problem, the tax agent…
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Indexing rates in the tax legislation
When the idea of indexing rates and thresholds in the tax legislation is discussed, it is often discussed in terms of bracket creep that occurs due to the individual income tax thresholds not being indexed. However, while this is a great example of this issue (if the highest threshold had have been indexed for CPI…
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Paris Tax Olympics
The second biggest party in French parliament after recent election has a new proposal… The want a new 90% tax on any annual income above €400,000 Currently the highest tax rate is 45% on income over €177,106 Kylian Mbappé (a football player for those who don’t know) received a monthly salary of €𝟔m at Paris Saint-Germain –…
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Everything about UPEs to corporate beneficiaries is WRONG
Since 2009 the Commissioner has told us a UPE to a corporate beneficiary becomes a loan and so we need to get an agreement in place and repay it over 7/10 years… And a recent AAT case with two senior Tribunal members said he is totally wrong!!!! The case is Bendel and Commissioner of Taxation…
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Payroll Tax on Medical Centres – We have the Final Rulings from the Commissioners of State Taxation
Four states (NSW, SA, QLD & VIC) have all released a Payroll Tax ruling on medical centres (the NSW one is at https://www.revenue.nsw.gov.au/help-centre/resources-library/rulings/payroll/pta-041 but they are all the same) and, as expected, the Rulings say in many cases payroll tax is payable on the standard medical centre arrangement… because if you read the contract the GPs…
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Undertaking Property Development – capital or revenue
I had to think about this as an issue… so why not turn that thinking into a 20 page paper on the issue for anyone who is interested…
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Just a reminder…
The new guideline on the Alienation of Professional Firm Income (PCG 2021/4) applies from 1 July 2022, so may be an issue when looking at this years tax returns… So below I have a 10 pager covering it in detail… But… If you have existing arrangements, you can continue to rely on the suspended guidelines for…
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Interest deductibility according to the Commissioner…
What happens when you read every Ruling the Commissioner has on interest deductibility… You end up with a very boring paper that you can steal from the next time someone asks for advice on interest deductibility…
TaxRambling.com 