Family trusts in 2010, part two
Listen to a Preview
Update Required
To play the media you will need to either update your browser to a recent version or update your Flash plugin.
  Changes are coming to how the ATO treats the taxation of family trusts - stay in touch with your accountant. In part two of his explanation of the changes coming this year to the taxation of family trusts, tax expert Michael Jones of Cummings Flavel McCormack looks at the extension of Division 7A shareholder loan rules to new situations. At present the Australian Taxation Office agrees that when a trust distributes income to a company, and the income is not paid but remains an unpaid entitlement, there is no loan from the company to the trust. But he says the ATO is developing a view that, if the entitlement remains unpaid for years, at some point it becomes a loan. He expects a draft ruling this year.Topics: Accounting & Tax, Family Business, Financial Management |
 Michael Jones, Cummings Flavel McCormack |