Division 7A - current operation and interpretation presentation

Published on 18 Nov 05 by NORTHERN TERRITORY DIVISION, THE TAX INSTITUTE

Division 7A has operated under the Tax Office horizon for a period of time in the belief it overcame the weakness of the “old” Sections 108 and 109. There now appears to be an increasing momentum for audit action in this area as a result of some legislative and interpretive events. The presentation focusses on three key areas (a working knowledge of Division 7A is assumed).

• Debt forgiveness - statute barred debts - implications for shareholders and companies
• Out with Section 109UB in with Section 109XA and Section 109XB - what do the changes mean and when do they apply
• Common misconceptions about the application of Division 7A.

Author profile

Steven Magor

Steve is the managing partner of PfA Chartered Accountants and has been in public practice since 1988. Prior to that he worked for the Australian Taxation Office for 10 years predominantly in policy and advising rules. - Current at 19 September 2006

More by Steve MAGOR

• Division 7A - current operation and interpretation paper - 18-November-2005
• A practitioner's perspective: Product rulings and tax effective investments - 07-May-1999

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