ATO Loses Landmark Division 7A Battle (Mar 25 Tax Update)

Relevant For:

Private businesses facing Division 7A tax implications.

Key Points:

• Recent court decision challenges ATO's treatment of unpaid present entitlements (UPEs).
• Taxpayers penalised since FY2010 may revisit assessments.
• Businesses following past ATO guidance unlikely to receive refunds.
• Division 7A risks still apply under subdivisions EA and EB.
• Reduced tax burden as interest payments on certain UPEs are no longer required.

Full Article:

The Australian Taxation Office (ATO) recently lost a landmark case concerning Division 7A and unpaid present entitlements (UPEs).

The court ruled that