DIVISION 7A – No obligation to repay principal on sub-trust loan

Practical Compliance Guideline (PCG) 2017/13 has been released by the ATO to deal with Division 7A UPEs under sub-trust loans which are likely to mature in the coming year. The PCG enables the conversion of a “7-year option 1 investment” sub-trust arrangement (Option 1 Loan) into a compliant loan, pursuant to section 109N of the Income Tax […]

ATO Guidance for Executors

One of the major concerns for taxpayers in taking on the role of a legal personal representative is that the Tax Commissioner may treat legal personal representatives (“LPRs”) as having a personal liability for a tax debts. In particular, where assets of a deceased estate have been distributed and there is still outstanding amounts owed […]